India SaaS debt collection start-up Credgenics raises $50m
Credgenics, operator of an India-focused software-as-a-service (SaaS) platform specialising in debt collection and resolution, has raised USD 50m in Series B funding at a valuation of USD 340m.
The round was led by Westbridge Capital, Accel Partners, Tanglin Venture Partners, Beams Fintech Fund, and unnamed strategic investors. The proceeds will go towards product development, international business expansion, and entering related industry segments, according to a statement.
Founded in 2019, Credgenics works with over 100 private banks, non-banking financial companies (NBFCs), financial technology platforms, and asset reconstruction companies, including IIFL Finance, Mahindra Finance, ICICI Bank, and HDFC Bank. There are now five offices in India, the core market, and early forays into Southeast Asia saw the launch of bases in Jakarta and Singapore. Vietnam will be next.
The company’s service suite covers digital collections, collections analytics, litigation management, a mobile app to coordinate field collections, agent performance management, and payments. It claims to have helped lenders boost resolution and collection rates by 20% and 25%, respectively, while reducing collection costs and collection times by 40% and 30%.
Credgenics handles more than 11m retail loan accounts and its loan book was worth USD 60bn as of March. The business has grown sevenfold since it last raised third-party funding in 2021. Credgenics generated revenue of INR 1bn for the 12 months ended March 2023 and recently turned profitable at the operating level.
AVCJ Research has records of three previous funding rounds. Titan Capital, an investment firm established by the founders of Snapdeal, led a seed round in 2020 and then re-upped in a INR 270m (USD 3.6m) pre-Series A later the same year alongside Accel and DMI Alternative Investments. WestBridge and Tanglin led a USD 25m Series A in 2021, supported by Accel.
“With artificial intelligence at its forefront, what Credgenics is doing is truly exceptional. Its unique services and talented workforce are poised to put the company on the map for success and change the face of the debt collections industry for the better,” said Sumir Chadha, a co-founder and managing partner at WestBridge.
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