SUMMARY
CredAvenue has acquired about 75% stake in Spocto, becoming the first global debt marketplace that caters to every stage of debt deal lifecycle
The deal is said to improve the overall asset quality of banks and NBFC partners
Spocto is a big-data analytics startup, offering its customer-driven insights to enhance the collection effectiveness of lending institutions
Debt marketplace startup CredAvenue has acquired about 75% stake in digital collections startup Spocto for around INR 400 Cr. This marks the startup’s first acquisition.
Founded by Gaurav Kumar in 2017, CredAvenue is a debt platform that connects enterprises with lenders and investors. The startup is not an NBFC, meaning it can’t lend users on its own.
According to Gaurav Kumar, founder and CEO of CredAvenue, Spocto’s digital collection capabilities would add value to lending partners on the platform.
He further said that the deal will help expand the company’s product offerings to include a digital collection solution for lenders, it would further improve its value proposition to the banking and financial sector.
“This deal is a forward integration that completes the product suites for the entire lifecycle. It will shrink the resources and time required for collection while improving the recovery rate,” Kumar said.
Commenting on the deal, Spocto Solutions’ cofounder and CEO Sumeet Srivastava said, “It is based on a strong synergy between CredAvenue and Spocto to offer data-driven, tech-first services to the lender and borrower communities, strengthening the debt ecosystem.”
Spocto is a big-data analytics startup, offering its customer-driven insights to enhance the collection effectiveness of lending institutions.
From a broader perspective, the deal would improve the overall asset quality of banks and NBFC partners, according to Kumar. Further, according to CredAvenue, Spocto would help in risk mitigation and fraud by tracking absconding borrowers through any digital footprint to any part of the world.
It said it has more than 2,300 corporates, 750 lenders on board and has facilitated debt volumes of around INR 90,000 Cr so far.
Back in 2021 September, CredAvenue raised $90 Mn in Series A funding led by Sequoia Capital. The investment round also saw participation from Lightspeed, TVS Capital Funds, Lightrock, Kunal Shah-led CRED, and Stride Ventures, among others.
CredAvenue operates five platforms for different types of requirements for both borrowers and investors.
- CredLoan: It provides term lending and working capital solutions for enterprises
- CredCoLend: For banks and NBFCs for co-lending partnerships
- Plutus: Bond issuance and investment for institutional and retail participants
- CredSCF: For trade financing solutions
- CredPool: For end-to-end securitisations and portfolio buyouts
Apart from these platforms, the fintech startup also offers portfolio management and monitoring services as SaaS offering to its clients.
