Credgenics, Accel-Backed Debt Resolution Platform, Aims for FY24 Profitability
Credgenics, a SaaS-based platform for debt collection and resolution supported by Accel, aims to attain profitability by the conclusion of the ongoing fiscal year, as per CEO Rishabh Goel. Initially, the company achieved a profit of around INR 50-60 lakh in its inaugural year but later invested in HR, technology, product development, and research and development. Having reached a break-even point on a monthly basis earlier this year, Credgenics targets overall net profitability by the end of the fiscal year.
Goel expressed, "We anticipate achieving overall profitability by the year-end". The company strategically positions itself to leverage the adoption of its debt resolution solutions, encompassing digital collections, litigation management, a field collections mobile app, and more. Credgenics aims to double its revenue in FY24, targeting INR 200-250 crore, up from over INR 100 crore in FY23. With a client base exceeding 100, including major financial institutions like ICICI Bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance, Credgenics currently manages 60 million retail loan accounts, handling a monthly loan book value of $5 billion.
Goel highlighted the customer distribution, noting, "Banks and NBFCs together account for approximately 80%, while fintechs constitute the remainder". Anticipating increased traction for Credgenics' debt resolution offerings in the later quarters of the fiscal year, aligning with heightened retail lending activity during the festive season, Goel mentioned, "The lending pace is slower in the first two quarters compared to the last two quarters when there is higher demand for both consumer and MSME credit". The company has secured $75 million in funding thus far from investors like Westbridge Capital, Tanglin Venture Partners, and Accel Partners. A recent series B funding round raised $50 million, valuing Credgenics at $340 million.
