Exclusive: Loan Recovery SaaS Startup Credgenics Bags Seed Round From Accel, Others

Gurugram-based fintech startup Credgenics is raising INR 24.8 Cr ($3.3 Mn) in seed stage funding round led by Accel India’s fund VI. DMI Alternatives fund, QED Innovation Labs, Breadlake Ventures, Blue Wolf Capital Limited also participated in the round, along with existing investors Titan Capital, founded by Snapdeal cofounders Kunal Bahl and Rohit Bansal.

Besides this, several angel investors such as former MD of SAP Labs India Dilip Khandelwal, Rupeek’s Sumit Maniyar, Livspace founder Ramakanth Sharma, 1mg cofounder Gaurav Agarwal have also invested in the company. Overall, 19 investors had participated in the round.

According to the ministry of corporate affairs filings accessed by Inc42, the company is issuing equity shares at an issue price of INR 64,601.82 per share at a face value of INR 10 and premium of INR 64,591 per share. It will also be issuing Series Seed compulsory convertible preference shares (CCPS) at an issue price of INR 64,601 per share, face value of INR 100 and premium of INR 64,501 per share.

With this, the company is looking to raise INR 24,87,81,608.82 for expansion and growth of the business. Prior to this round, the company had raised $300,000 in a round led by Titan Capital. mCarbon’s CEO and founder Rajesh Razdan, Equirus Capital’s MD Ajay Garg, Kwench’s founders Mitesh Damania and Sunder Nookala are also investors having participated in the initial seed 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. Over the first year, it created a large data set to be able to predict borrower behaviour and create the digital platform in the hope of solving India’s INR 10 Lakh Cr bad loans problem.

The SaaS-based loan recovery platform can be used to monitor borrower behaviour and shoot communications such as mails and text messages when a borrower defaults on their payments. The platform also uses artificial intelligence (AI) and machine learning (ML) to predict the probability of borrowers paying up their dues or defaults. This helps lenders adopt appropriate strategies to recover individual loans instead of a one-size-fits-all approach.

Credgenics’ clientele includes NBFC and fintech clients such as Loantap, Loansimple, Rupeeredee, Cashkumar and Drip Capital, and mainstream lending clients like Kotak Mahindra Bank and ICICI Bank. Speaking to Inc42 earlier, the company claimed that recoveries have gone from 780 out of 1,000 cases to 890 out of 1,000 cases for its clients after moving on to Credgenics’ platform.

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