CredAvenue turns unicorn after raising $137 million
PremiumCredAvenue intends to use the capital to expand its business and acquire companies
MUMBAI : Enterprise debt marketplace CredAvenue raised a $137-million round led by New York-based venture capital and private equity firm Insight Partners at a valuation of $1.3 billion. New investors B Capital Group, and Dragoneer, besides existing investors Sequoia Capital, Lightspeed Ventures, TVS Capital and Lightrock, also participated in the round.
With this round, the fintech startup, which connects enterprises with banks and other lenders, is the latest to join the unicorn club. In September, it raised a $90-million Series A round led by Sequoia Capital.
Founded in 2017, Chennai-based CredAvenue offers five platforms to cater to the requirements of both borrowers and investors, including CredLoan, a term loan and working capital offering for enterprises; CredCoLend, a co-lending platform for non-banks and banks; Plutus, a bond issuance and investment platform for institutional and retail investors; CredSCF, a trade financing platform; and CredPool for end-to-end securitization and portfolio buyouts. It also offers portfolio management and monitoring services as a SaaS offering to borrowers and lenders. The company’s client base includes more than 2,300 corporates and 750 lenders. It claims to have so far facilitated debt of over ₹90,000 crore.
Gaurav Kumar, founder and chief executive, CredAvenue, said the company expects a hyper-growth journey over the next few years. Indian debt markets are at the cusp of transformation similar to the equity markets in the 1990s, he added. “We are paving the way for India’s debt market to realize its full potential."
CredAvenue intends to use the capital to expand its business and acquire companies. It recently acquired Spocto, a digital collections firm with a global footprint. CredAvenue will also enhance its technological capabilities.
As part of the recent transaction, Nikhil Sachdev, managing director, Insight Partners, will join CredAvenue’s board. “By leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimizes manual and recurring efforts in underwriting, executing and monitoring debt," said Sachdev.
MINT PREMIUM See All
“Debt in India is still under-penetrated as a percentage of gross domestic product at about 60%. This creates a massive opportunity for a leading player like CredAvenue," Kabir Narang, founding general partner, B Capital Group, said. “At $1.9 trillion, the Indian debt market is still underserved. CredAvenue will help automate and increase efficiency," Narang added.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!