CredAvenue, a fintech debt marketplace, has raised $137 million led by New York-based global private equity and venture capital firm Insight Partners, B Capital Group, and Dragoneer, with participation from existing investors. With this fundraise the company has entered the unicorn club - startups worth more than $1 billion. The latest fundraise valued the company at $1.3 billion.
CredAvenue is an enterprise debt marketplace that connects enterprises with lenders and investors. The company has a portfolio of five platforms catering to various requirements of both borrowers and investors. These include CredLoan, its term lending and working capital solutions for enterprises; CredCoLend for banks and NBFCs for co-lending partnerships; Plutus for bond issuance and investment for institutional and retail participants; CredSCF trade financing solutions and CredPool for end to end securitisation and portfolio buyouts.
The company also offers portfolio management and monitoring services as a SaaS offering to its borrowers and lenders. It currently has over 2,300 corporates, over 750 lenders and claims to have facilitated debt volumes of over Rs90,000 crore.
Gaurav Kumar, Founder & CEO, CredAvenue, said that CredAvenue expects to catapult on a hyper-growth journey over the next few years. He added that the Indian debt markets are at the cusp of transformation similar to the country’s equity markets in 1990s.
“We are paving the way for India's debt market to realise its full potential, and we plan to soon being a leading player in the global debt markets with our unique and diversified product suites,” he said.
CredAvenue intends to use the funds to expand the business in India along with key global markets, organically and inorganically, by acquiring diverse companies for forward and backward services and products integration. It broadened its offerings by recently acquiring Spocto, a digital collections company with global footprints. The company will also use the funds to enhance its technological capabilities.
Nikhil Sachdev, managing director at Insight Partners will join the company’s board.
"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 Sachdev.
Previously the company had raised $90 million in its series A fundraise in September from Sequoia Capital, Lightspeed Ventures, TVS Capital, and Lightrock.
“Debt in India is still under-penetrated as a % of GDP at ~60%. This creates a massive opportunity for a leading player like CredAvenue," said Kabir Narang, founding general partner at B Capital Group.
"At $1.9 trillion, the Indian debt market is still underserved. CredAvenue helps automate and increase efficiency across the value chain. This is reflected in the strong retention amongst borrowers and repeat deals with investors. We like their tech-first approach to solve this problem,” he added.
