Access to safe and secure debt is something that majority of Indians still lack. In fact, debt in India is still under-penetrated as a percentage of gross domestic product, at around 60% and amounting to $1.9 trillion, the Indian debt market continues to be underserved.
This is where startups like CredAvenue come in. It tries to make it easier for companies to access the debt market to raise funds, obtain loans and help banks and NBFCs to lend and monitor loans. Its efforts paid off, and now the startup has become the latest Indian company to enter the unicorn club.
This comes after raising $137 million in its Series B funding round, led by Insight Partners, B Capital Group and Dragoneer, a New York-based venture capital and private equity firm. The funding round, which also included participation from existing investors Sequoia Capital, Lightspeed Ventures, TVS Capital and Lightrock, brought its valuation to $1.3 billion.
The unicorn club has grown steadily over the past year and added over 40 new members last year. CredAvenue has become India’s 11th unicorn this year, joining a list that includes names like Hasura, Mamaearth, Fractal, Darwinbox, Dealshare and others. Coincidentally, it is the fastest growing Indian fintech unicorn to date, having reached the milestone just 18 months after its inception.
The online debt market was last valued at $410 million in September. As part of the transaction, Nikhil Sachdev, Managing Director of Insight Partners, will join CredAvenue’s Board of Directors.
CredAvnue has five lending platforms – CredLoan, a term loan and working capital offering for businesses, CredCoLend, a co-lending platform for non-banks and banks, Plutus, the credit issuance platform. ‘bonds and investment for institutional and retail investors, CredSCF, a trade financing platform; and CredPool for end-to-end securitization and portfolio buyouts. Additionally, the company offers services such as portfolio management and monitoring services as a SaaS offering to borrowers and lenders.
Today, it has facilitated over $10.5 billion in loans to date and has over 2,300 businesses, 450 businesses and 750 lenders active on the platform while continuing to connect businesses with investors and lenders.
Proceeds from the funding round will be used by CredAvenue to scale its platform and deepen its technology capabilities by investing in technology innovation, AI-ML and data analytics. Funds will also be deployed to fuel expansion in key global markets and inorganic growth through acquisitions. One of its recent acquisitions includes Mumbai-based artificial intelligence and machine learning-based debt collection platform Spocto Solutions.
CredAvenue, with what it claims is the nation’s most comprehensive technology stack for addressing the corporate debt cycle, has raised over $227 million to date.