Debt collection-focused software-as-a-service startup Credgenics on Wednesday said it has raised Series B funding of $50 million (around Rs 414 crore) led by existing investors Westbridge Capital, Accel and Tanglin Ventures, along with Beams Fintech Fund joining the cap table.
The new round has valued the New Delhi-based startup at $340 million.
Credgenics, run by Analog Legalhub Tech Solutions, will use the fresh funds for product development, international business expansion and capturing other banking, financial services and insurance industry segments.
Founded in 2018 by Rishabh Goel, Anand Agrawal and Mayank Khera, Credgenics helps banks and NBFCs (non-banking financial companies) streamline their collection processes and reduce their non-performing assets by using technology to reduce manpower used for legal and collection processes.
It offers debt resolution solutions, including digital collections, collections analytics, litigation management, field collections mobile app, agent performance management, and payments platform that use AI-driven intelligent automation and machine learning models to deliver efficient collections.
“We plan to introduce innovative solutions and expand our footprint in other countries as well as invest in product development. Strengthening our partnership with our existing investors is a strategic decision that will help us bring agility, convenience and efficiency to the loan collections process,” said Agrawal, co-Founder and chief product and technology officer, Credgenics
The startup claims to have seen a 7x growth in its revenue and has turned operationally profitable. The startup clocked Rs 100 crore in FY23, according to a statement. The company said that its overall loan book was worth $60 billion in FY23.
Currently, the startup claims to be working with 100 financial organisations and is operational in India. It has started expanding to the Southeast Asia region as well.
It counts companies like IIFL Finance, Mahindra Finance, ICICI Bank, HDFC Bank, DMI Finance, Hero Fincorp, TVS Credit, IREP Credit Capital and Indifi as part of its client portfolio.
In 2021, it raised Series A funding of $25 million led by Westbridge Capital and Tanglin Venture Partners along with Accel and a host of angel investors.
Prior to that, Credgenics raised $3.5 million in a pre-Series A round led by Accel Partners, DMI Alternatives fund with participation from Titan Capital in 2020.
Meanwhile, PE firm WestBridge Capital, which is best known for making private investments in public equities (or PIPE deals) has seen a shift in strategy by pivoting to building a large portfolio of startups.
It typically invests in the $25-50 million range and goes up to $200 million in larger companies and at least nine startups it has backed have turned unicorns. These include PhysicsWallah, sales automation SaaS platform LeadSquared, online tutoring platform Vedantu and Lead.
