CredAvenue, an online loan marketplace, has raised $137 million in its Series B fundraising round, making it the eleventh unicorn of 2022. The financial start-up announced that its valuation has risen to $1.3 billion, more than tripling in just six months.
With involvement from existing investors, the fundraising was spearheaded by Insight Partners, a worldwide private equity and venture capital firm based in New York, B Capital Group, and Dragoneer.
CredAvenue secured a $90 million Series A investment round in September of last year, led by Sequoia Capital India and co-led by Lightspeed, TVS Capital Funds, and Lightrock. According to sources, the equity transaction valued the company at over $410 million.
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Gaurav Kumar, Founder and CEO of CredAvenue, stated, “We have a once-in-a-lifetime opportunity to transform the global debt and collections market through a combination of the marketplace, operating system, and fulfillment.”
“CredAvenue, which has a solution for every stage of the debt product life cycle, expect to catapult on a hyper-growth trajectory over the next few years to make a difference for all Indian debt market participants and bring unprecedented transformation, akin to the equity markets of the 1990s, to the way a typical debt lifecycle is handled in India,” he added.
The funds will be used to organically and inorganically expand the company’s business in India and other key worldwide markets by obtaining diversified companies for forward and backward services and product integration.
11th Unicorn of 2022
Posted by Next Big Brand on Sunday, March 6, 2022
It recently acquired Spocto, a collections company with a global network, to diversify its products. CredAvenue has purchased a 75.1 percent share in the company, valuing it at Rs 410 crore.
The funds will also be used to improve the company’s technological capabilities by investing in technology innovation, AI-ML, and data analytics, according to the corporation.
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The debt market claims to have reached a new milestone, with a total Gross Turnover Volume (GTV) of more than $12 billion. It presently has more than 2,300 corporates, 750 lenders on its platform and has facilitated debt volumes of over Rs 90,000 crores.
“By leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimises manual and recurring efforts in underwriting, executing, and monitoring debt,” said Nikhil Sachdev, managing director of Insight Partners.
“The company has already achieved incredible growth and key bank logos and partnerships in just 15 months. We look forward to partnering with CredAvenue as they continue to scale up,” he added. Sachdev will join the company’s Board.
