Fintech Unicorn CRED Acquires This Lending SaaS Startup With the latest acquisition, the Bangalore-based financial service provider is extending its customer base to cover different audiences
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Being the latest deal in town, the Tiger Global backed CRED acquires the 2013 established CreditVidya, a SaaS startup which enables financial institutions and NBFCs to make critical decisions about thin file customers by underwriting APIs.
With this, CreditVidya joins HipBar, Parfait Finance and Investment, and Happay as the list of companies under CRED. The company disclosed that the transaction has been a mix of cash and stock and that the closure of the acquisition of the lending as a service startup is subjected to requisite approvals.
Analytical Insights, a leading media name in big data, AI, analytics, and robotics has named CreditVidya as one of the top 10 leading fintech companies to watch out in May 2022.
The firm, in an official release, shared statements of the founders on the acquisition.
"Expanding access to credit is a key driver for financial progress. CreditVidya's patented tech stack uncovers signals of trust among under-served cohorts. We look forward to supporting them in powering an inclusive credit ecosystem" said Kunal Shah, Founder, CRED.
Abhishek Agarwal, Co-Founder and CEO, CRED added "We've invested in building category-defining products that bring financial services to credit under-served Indians through our partners, transforming how risk is assessed and trust measured to drive financial inclusion. In our next phase of our growth, as we build a brand and scale distribution, we are excited to learn from the CRED team."
However, despite the legal acquisition, CRED and CreditVidya will continue to operate independently, with the latter's 200+ employees getting full benefits as CRED's team members, inclusive of the ESOP program.
As per data maintained by Tracxn, CreditVidya achieved Series B status with its latest funding, which took place in January 2019 for $3 million. Its investors include Bharat Fund, Matrix Partners India, and Kalaari Capital.
Talking about the takeover, Rajiv Raj, co-founder & director, CreditVidya shared "In the last few years, we have leveraged the power of technology to expand access to credit. As we step forward into a new era of growth with CRED, I would like to thank our team and partners for their continued faith in our mission."