CredAvenue has become the youngest Fintech Unicorn in India in just 18 months after it was founded by Gaurav Kumar in 2017. It has become the 11th start-up in 2022 to attain unicorn status.
The debt solution startup that helps businesses and enterprises secure debt from lenders raised $37 million in a Series B funding round led by Insight Partners, B Capital Group and Dragoneer . This brings the value of the start-up to $1.3 billion. According to experts, the funding is 40 times the current revenue of $25 to $30 million. The start-up has recently acquired a 75 per cent stake in Mumbai-based Spocto Solutions, an artificial intelligence and machine learning-powered debt recovery platform.
“If you’re an enterprise and prefer direct finance, you can come to our loan stack, bond stack and ABS stack. If you have indirect financing needs, you can set yourself on the co-ending platform and bring your retail customers. Our customers are any enterprise with revenue of more than $1.3 million,” said Kumar.
In 2020, India’s credit-to-Gross Domestic Product (GDP) ratio was 56 per cent, according to the data from the Bank of International Settlements (BIS). With the ratio being almost half of the G20 average, India has a long way to go in increasing access to credit.
“Capital markets have largely been concentrated. Three per cent of the rated universe has access to almost 90 per cent of the total debt market. So, unless infrastructure like this is built, the market will not have the confidence to access lower-rated bonds, below AAA and AA,” Kumar added.
To date, CreditAvenue has facilitated loans of more than $10.5 billion. More than 2,300 corporates, 450 enterprises, and 750 lenders use the platform. With the new funds, the startup plans to expand its business in India and acquire companies to accelerate its growth.
“We are excited about CredAvenue’s value proposition of bringing investors and borrowers on a single-window ecosystem to discover, facilitate and track debt products.” said Kabir Narang, Founding General Partner at B Capital Group.