Fintech Startup CredAvenue Turns Unicorn With $137 Million Funding

The company intends to use the funds to expand the business in India along with key global markets

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Fintech startup CredAvenue has joined the unicorn club with a Series B fundraising round of $137 million, led by New York-based global private equity and venture capital firm Insight Partners, B Capital Group, and Dragoneer, with participation from existing investors. With this, the company's post-money valuation has grown to $1.3 billion.The Series B round of capital raise was preceded by India's largest Series A round (equity), led by Sequoia Capital, Lightspeed Ventures, TVS Capital, and Lightrock.

Company Handout

"I would like to extend a warm welcome to our new investor partners as we embark on this mission to deepen the Indian debt market. We have a once-in-a-lifetime opportunity to transform the global debt and collections market through a combination of the marketplace, operating system, and fulfillment. CredAvenue, which has a solution for every stage of the debt product life cycle, expect to catapult on a hyper-growth trajectory over the next few years to make a difference for all Indian debt market participants and bring unprecedented transformation, akin to the equity markets of the 1990s, to the way a typical debt lifecycle is handled in India. We are paving the way for India's debt market to realize its full potential, and we plan to soon be a leading player in the global debt markets with our unique and diversified product suites," said Gaurav Kumar, founder and CEO, CredAvenue.

Nikhil Sachdev, managing director, Insight Partners added that by leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimizes manual and recurring efforts in underwriting, executing, and monitoring debt. "With CredAvenue's best in class founding team, the company has already achieved incredible growth and key bank logos and partnerships in just 15 months. We look forward to partnering with CredAvenue as they continue to scale up," he further added.

CredAvenue intends to use the funds to expand the business in India along with key global markets, organically and inorganically, by acquiring diverse companies for the forward and backward services and products integration. It broadened its offerings by recently acquiring Spocto, a collect-tech company with global footprints.

The Company will also use the funds to enhance its technological capabilities by investing in deep technology innovations, AI, ML, and data analytics. The company said in a statement that it has recently achieved a milestone of clocking in a cumulative Gross Turnover Volume (GTV) of over $12 billion in a very short duration.