Credgenics raises $25mn in series-A funding, hits valuation of $ 100 mn

Credgenics, SaaS-based end-to-end debt resolution and legal automation platform, has received $25 million in the Series-A round and multiplied its valuation 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 Ashneer Grover, founder & CEO – BharatPe, Abhimanyu Munjal, MD & CEO – Hero Fincorp Group, Karthik Bhat, founder – Force Ventures, Kushal and Gautam, founders – Fareye. This round was also co-led by renowned existing investor Accel Partners.

The funds will be used to expand into new demographics, strengthening the R&D, scaling the core operations across India, improving client services, and streamlining the workflow. Credgenics manages over Rs 1,580 crore of debt on its financial platform and allows its clients to improve their resolution rates by over 20% with an average 20-days reduction in the resolution time, said the company.  

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.

In 2020, Credgenics raised $3.5 million in a pre-Series-A round led by Accel Partners, DMI Alternatives fund with participation from then existing investors Titan Capital.  

Rishabh Goel, Co-Founder & CEO, Credgenics, said, “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."

Goel futher added that the current fund raise will get utilised to find experienced professionals across all levels and build a world-class leadership team.

The company was founded in 2018 by IIT Delhi Alumni, Rishabh Goel, Anand Agrawal, and advocate Mayank Khera, Credgenics is a SaaS-based collections and legal automation platform aiming to solve India’s $200 billion+ bad debt problem. Credgenics works with major private sector banks, such as ICICI Bank, IDFC First, Axis Bank, and Yes Bank, besides 32+ NBFCs like Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, etc.

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.”

Credgenics currently works with 2200+ empanelled lawyers and collection partners.  The organization aims to ultimately foster financial inclusion in India through expeditious resolution of unprecedented volumes of stressed assets in larger finance/fintech space.