Main Highlights:
- CredAvenue, a debt marketplace that supports businesses and organizations in acquiring financing from lenders, said on Sunday that it had achieved unicorn status faster than any other Indian fintech company.
- The two-year-old firm just announced the closing of a $137 million Series B financing led by Insight Partners, B Capital Group, and Dragoneer.
- CredAvenue, founded by Gaurav Kumar of Vivriti Capital, was valued at $1.3 billion in the round, up from about $410 million in September last year, the business said.
- CredAvenue asserts that it has built India’s most comprehensive technology stack for managing enterprises’ whole debt cycle, from disbursement to the collection.
- It provides platforms that provide businesses with term loans and working capital solutions, an origination platform that enables banks and non-bank financial institutions to engage in co-lending, and a bond platform that supports enterprises in obtaining debt financing.
CredAvenue, a debt marketplace that assists businesses and organizations in obtaining finance from lenders, said on Sunday that it had been the quickest Indian fintech firm to achieve unicorn status.
The two-year-old company announced the close of a $137 million Series B fundraising round led by Insight Partners, B Capital Group, and Dragoneer. CredAvenue, created by Vivriti Capital co-founder Gaurav Kumar, is valued at $1.3 billion in the round, up from around $410 million in September last year, the company said.
Investors
Sequoia Capital India, Lightspeed Venture Partners, TVS Capital, Light rock, Vivriti Capital, and Indian fintech CRED are among the startup’s investors. When businesses seek to obtain loans, they confront many obstacles, including a lack of transparency regarding interest rates and market valuation. Kumar stated in an interview with TechCrunch that this is his fourth business, and he has worked in the loan industry for over 16 years. The debt market is not deepening.
CredAvenue claims to have developed India’s most comprehensive technological stack for managing businesses’ whole debt cycle, from disbursement to collection.
CredAvenue’s Operations
It operates platforms that provide term loans and working capital solutions to businesses, an origination platform that enables banks and non-bank financial institutions to collaborate on co-lending, and a bond platform that assists institutional and retail investors with bond issuance. Additionally, it provides trade finance, full-service securitization, and portfolio buyouts. He stated that if you are a business seeking direct financing, you may visit their loan stack, bond stack, or ABS stack. If you require indirect finance, you may establish a co-financing platform and invite your retail consumers on board. Their clientele is businesses with more than $1.3 million combined annual revenue.
He continued by saying that once a partner — whether a lender or a borrower — integrates with them on their operating system, you have access to everyone on their network. Their service is really about interoperability. They are laying the groundwork for India’s debt market to reach its full potential. With their differentiated and varied product suites, they want to become a market leader in the global debt markets quickly. It recently purchased Spocto, a collecting startup with operations in three regions. However, Kumar stated that the business intends to focus on India.
CredAvenue has arranged loans totaling more than $10.5 billion, Kumar stated. He added that the platform is now operational with over 2,300 corporates, 450 companies, and 750 lenders. The firm intends to use the additional capital to develop its operations in India and also seeks to acquire companies to fuel its expansion inorganically.
In a statement, Kabir Narang, Founding General Partner of B Capital Group, stated. We are pleased about CredAvenue’s value proposition of connecting investors and borrowers through a centralized ecosystem for discovering, facilitating, and tracking loan products. They’ve known Gaurav for some years, and it’s lovely to be a part of the great team that’s digitizing India’s debt markets. In India, debt remains under-penetrated as a percentage of GDP at 60%. This presents a tremendous potential for a market leader like CredAvenue.
He continued With a market capitalization of $1.9 trillion, India’s debt market remains underdeveloped. CredAvenue enables automation and efficiency gains throughout the value chain. This is seen in the high rate of borrower retention and recurring business with investors. They appreciate their technology-first approach to resolving this issue. Beyond the company, what excites me is the objective and impact of offering access to finance to unleash human potential.
