Fintech Unicorn CredAvenue Acquires 82% Stake In SaaS Startup Corpository

Fintech unicorn CredAvenue has acquired an 82% stake in SaaS startup Corpository through a combination of primary investment and secondary purchase from existing shareholders. The deal is pegged at around INR 100 Cr.

CredAvenue said that it will be wholly acquiring Corpository this fiscal year (FY22).

With this deal, Corpository’s underwriting solution will help CredAvenue’s lenders to evaluate and make lending decisions faster thus, reducing the overall time of the lending process. Corpository’s offerings will also keep CredAvenue’s lenders updated on the developments at the borrowers’ end.

This development comes after CredAvenue entered the unicorn club after raising $135 Mn in a Series B funding round in March 2022. The round was led by New York-based Insight Partners. Other investors, who participated in the round, are B Capital, Dragoneer Investment Group, Sequoia Capital, Lightrock, Lightspeed Ventures, and TVS Capital.

Founded by Gaurav Kumar in 2017, CredAvenue is a debt platform that connects enterprises with lenders and investors. Its offerings include CredLoan, CredCoLend, Plutus, CredSCF and CredPool. It claims to have more than 2.3K corporates and over 750 lenders in its portfolio.

CredAvenue claims that its revenue has grown by 6X in FY21 while its annual recurring revenue (ARR) was $40 Mn in the last fiscal year. The startup aims to achieve more than $90 Mn in revenue in the current fiscal year (FY22).

In February 2022, CredAvenue acquired about 75% stake in digital collections startup Spocto for around INR 400 Cr. The acquisition helped increase its product offerings and also, improve its value proposition to the banking and financial sector.

In September 2021, CredAvenue raised $90 Mn (INR 667 Cr) in its Series A round of funding led by Sequoia Capital. The round also saw participation from investors including Lightspeed, TVS Capital Funds, Lightrock, and Stride Ventures. 

The Rise Of Indian Lendingtech Space

According to an Inc42 report, the Indian fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025. Of this, lending tech is likely to account for 47% ($616 Bn).

In April 2022, P2P lending startup LenDenClub launched a corporate venture capital fund named LenDenClub Alpha to help early-stage startups design their vision and build a robust business model that offers tech-backed futuristic products to create optimum consumer impact. 

In March 2022, Gurugram-based financial services startup Aye Finance raised an INR 75 Cr debt fund from Netherlands-based existing investors including Triple Jump BV and Northern Arc. 

Founded by Sanjay Sharma and Vikram Jetley, Aye Finance caters to unbanked micro-enterprises of India by offering B2B loans.

In 2019, Bengaluru-based digital lending startup ZestMoney raised $20 Mn in a round led by Quona Capital. The round saw participation from Reinventure and existing investors including Ribbit Capital, Omidyar Network and PayU.

Update | 9th May, 10:40 AM

An earlier version of the story had mentioned the deal size incorrectly. The same has been updated to reflect the right number.

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