CRED To Acquire Lending Tech Startup CreditVidya

SUMMARY

While the value of the deal is undisclosed, CreditVidya was last valued at about $30 Mn

The decade old, Kalaari Capital and Matrix Partners-backed startup CreditVidya has raised $10 Mn in equity funding so far

CreditVidya will continue to operate independently and all its employees will get all the benefits extended to CRED team members

Credit card management startup Cred is set to acquire lending-as-a-platform CreditVidya in a mix of cash and stock deal, subject to requisite approvals. The acquisition will help CRED expand its credit products’ portfolio, while CreditVidya looks to scale distribution.

This is CRED’s fourth acquisition in the year, following its investments in lending tech Liquiloans and CredAvenue and expense management platform HapPay. Besides, it was also in talks to acquire liquor startup HipBar in a bid to acquire its PPI licence.

According to CRED, CreditVidya will continue to operate independently and its team of 200+ employees will get all the benefits extended to CRED team members, including its ESOP program.

While the value of the CRED-CreditVidya deal is undisclosed, the fintech SaaS startup was last valued at about $30 Mn. Founded in 2012, Hyderabad-based CreditVidya counts Kalaari Capital, Matrix Partners and several others among its investors and has raised $10 Mn in equity funding.

Founded by banking veterans Abhishek Agarwal and Rajiv Raj, the full-stack platform enables businesses to embed customised credit products through APIs. From origination to underwriting to collections of loans, it partners with 40+ lenders such as TVS Credit, Aeon Credit, Fullerton India and more, to provide loans to its borrowers-base of 25 Mn+.

“We…bring financial services to credit under-served Indians through our partners, transforming how risk is assessed and trust measured to drive financial inclusion. In the next phase of our growth, as we build brand and scale distribution, we are excited to learn from the CRED team,” Abhishek Agarwal said.

Kunal Shah’s CRED is only four years old and has raised more than $920 Mn from marquee investors such as Tiger Global, FalconEdge and others. Valued at nearly $6.4 Bn, the startup recently launched its Scan and Pay UPI feature and a small-value loan feature for its exclusive community. CRED’s UPI feature is among the top gainers, as it has been steadily increasing its transaction volume. In October 2022 alone, the startup marked a 42% month on month (MoM) growth, owing to its newly introduced cashback feature.