Debt marketplace CredAvenue acquires 75% stake in Spocto for Rs 400 cr

CredAvenue raised $90 mn in its Series A fundraise last year at a valuation of $410 million

Online debt marketplace CredAvenue has acquired a 75.1 per cent stake in Spocto, a digital collections company, in a deal valued at about Rs 400 crore.

Expanding the product offering to include a digital collection solution for lenders on the CredAvenue platform will further improve its value proposition to the banking and financial sector, the company said. Spocto employees will continue to service all existing customers under the arrangement.

Spocto will help in mitigating risk and fraud by tracking absconding borrowers through any digital footprint to any corner of the world. This will improve collection efficiency at a fraction of the costs incurred on offline platforms. Integrating this with CredAvenue’s retail offering will enhance the asset quality and profitability of the lending book. 

Gaurav Kumar, founder and CEO, CredAvenue, said, “This deal is a forward integration that completes the product suites for the entire lifecycle. It will shrink the resources and time required for collection while improving the recovery rate. From a broader perspective, it will improve the overall asset quality of our bank and NBFC partners.”

Sumeet Srivastava, fo-founder and CEO of Spocto Solutions, said, “This deal is based on a strong synergy between CredAvenue and Spocto in offering data-driven, tech-first services to the lender and borrower communities and strengthening the debt ecosystem. Like CredAvenue, we have created this category. We are poised to leverage the depth and width of the lender network present on the CredAvenue platform.”

In September last year, CredAvenue closed its Series A funding round of $90 million led by Sequoia Capital India and co-led by Lightspeed, TVS Capital Funds and Lightrock. The equity funding valued the company at approximately $410 million. 

Launched in August 2020, the debt marketplace has more than 450 lenders on the platform including HNIs, institutional investors and family offices, close to 2,000,000 retail customers, and services around 1.1 million loans every day on an average.