Credgenics, SaaS-based debt resolution and legal automation platform, has received US$25 Mn in series A round at a valuation of over $100 Mn.
The round was led by investors Westbridge Capital and Tanglin Venture Partners, along with the participation of marquee investors Ashneer Grover, founder and CEO of BharatPe, Abhimanyu Munjal, MD and CEO of Hero Fincorp Group, Karthik Bhat, founder of Force Ventures, Kushal and Gautam, founders of Fareye. Existing investor Accel Partners also participated in the round.
Founded in 2018 by Rishabh Goel, Anand Agrawal and Mayank Khera, Credgenics is a loan recovery management SaaS product with a mix of offline and online services to lending startups and NBFCs. The company started its journey by offering loan resolution services to NBFCs and small lending startups with a panel of lawyers. In 2020, Credgenics raised $3.5 Mn in a pre-Series-A round led by Accel Partners, DMI Alternatives fund with participation from then existing investors Titan Capital. It has raised a total of about $28.5 Mn finding till date.
“We are really excited to have such marquee investors on board to back us and invest in our vision. In India, where the credit demand of more than $600 Bn is being met through informal sources, digital lending is set to cross the $100 Bn mark by the end of 2023,” said Rishabh Goel, cofounder and CEO, Credgenics.
The funds will be used to expand into new demographics, strengthen the research and development, scale the core operations across India, improve client services, and streamline the workflow. Credgenics manages over INR 1580 Cr of debt on its financial platform and claims to help its clients improve the resolution rates by over 20% with an average 20-days reduction time. As a result of the efficient SaaS-based data management, the creditor’s return on investment has improved by 5x, it claims.
Goel added that the increased disbursement of credit has led to a spike in the NPAs for both NBFCs and banks. The funds of the new financing round will be utilised to find experienced professionals across all levels and build a world-class leadership team. The Credgenics team comprises 150+ members. The platform also collaborates with 2200+ legal counsels pan India for late stage delinquencies. To formulate the debt recollection and thereby remedy the steep rise in the NPA, the company works with 7 banks like ICICI Bank, IDFC First, Axis Bank, and Kotak Bank, besides 40+ NBFCs like IIFL Finance, Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, among others.
The roadmap also includes International expansion beyond the Indian demographics. This includes a thorough R&D on the judiciary and fiscal measures prevalent in foreign markets, he stated.
“We are very excited to have Westbridge and Tanglin joining us, and in the confidence of our earlier investors reinforced during this round in our journey towards building the end-to-end collections platform and revolutionizing the debt collection sector. We have built a full stack technology infrastructure to digitize collection besides being equipped to handle volume mediations while improving overall debt collection efficiency,” added Anand Agrawal, cofounder and CTO, Credgenics.
“Credgenics is addressing a massive pain point for the Indian financial ecosystem. Their success across a range of customers including large banks, NBFCs and fintechs clearly demonstrates the comprehensive and versatile nature of their technology platform and solution offerings. Rishabh, Anand and Mayank are exceptional founders with deep product thinking and rare execution capabilities. At Tanglin, we are privileged and extremely excited to be partnering with them,” said Sankalp Gupta, partner, Tanglin.
India is home to approximately 1,263 digital lending startups, out of which over 147 (12% of the total 1,263) are backed by venture capital funding, according to Inc42 Plus analysis. With venture capital inflow in B2B lending startups growing at a CAGR (2015-2019) of 72%, it remains the most favoured sub-segment within the lending tech segment.