Credgenics secures $25mn, valuation touches $ 100 mn

Credgenics, a SaaS-based end-to-end debt resolution and legal automation platform, has obtained $25 million in the Series-A round and its valuation escalates by 5.5 times to $100 million within six months from its last fundraise.

The financing round was led by Westbridge Capital and Tanglin Venture Partners, along with the participation of investors Abhimanyu Munjal, MD & CEO – Hero Fincorp Group, Karthik Bhat, founder – Force Ventures, Ashneer Grover, founder & CEO – BharatPe,  Kushal and Gautam, founders – Fareye. This round was also co-led by renowned existing investor Accel Partners.

The funds would be used to strech into new demographics, strengthening the R&D, scaling the core operations across India, improving client services, and streamlining the workflow. Credgenics handles more than 1,580 crore of debt on its financial platform and allows its clients to improve their resolution rates by over 20 percent with an average 20-days reduction in the resolution time, states the firm.

Rishabh Goel, Co-Founder & CEO, Credgenics, says, “In India, where the credit demand of more than $600 billion is being met through informal sources, digital lending is set to cross the $100 billion mark by the end of 2023. The increased disbursement of credit has led to a spike in the NPAs for both NBFCs and banks."

The Credgenics team comprises 150+ members, where its strength is tech and product team comprising of more than 70 engineers, and the platform also collaborates with 2200+ legal counsels pan India for late stage delinquencies. To formulate the debt recollection and thereby remedy the steep rise in the NPA, the company works with 07 leading and prominent banks like ICICI Bank, IDFC First, Axis Bank, and Kotak Bank, besides 40+ marquee NBFCs like IIFL Finance, Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, among others.

Goel further adds that the current fund rise would be utilised to find experienced professionals across all levels and build a world-class leadership team.

Rishit Desai, Principal, West Bridge, said, “We strongly believe that Credgenics platform will help financial services organization improve their collections processes and the financial burden of rising Non-performing Assets. We admire the vision and leadership skills of Rishabh, Anand, and Mayank in pioneering the use of technology to improve the financial services collections processes. In a short period of time, they have been able to attract the most prestigious banks and NBFCs as their customers.”