Debt market CredAvenue Pvt. turned India’s newest unicorn after elevating $137 million in a spherical led by Perception Companions, B Capital Group and Dragoneer.
The valuation of the Chennai-headquartered fintech, which connects enterprises with lenders and traders, rose to $1.3 billion from $410 million in September. That makes it India’s quickest fintech unicorn – — privately-backed startups valued over $1 billion — inside 18 months of being established, CredAvenue stated in an announcement.
The Sequoia Capital and Lightspeed Ventures-backed startup focuses on offering digital expertise options for all levels of the debt cycle, from disbursal to collections. Current traders additionally participated within the spherical.
A surge in financing centered on Indian e-commerce and expertise firms led to a unicorn-making spree final 12 months, and proceed investments by enterprise capital corporations counsel the streak is spilling into 2022.
CredAvenue plans to make use of the funds to broaden in India and into key international markets in addition to make acquisitions. It just lately purchased Spocto, which focuses on expertise to assist collections.
“India’s debt market will go into hyper-growth mode over the subsequent week years, offered digital debt infrastructure helps the expansion,” founder and Chief Govt Officer Gaurav Kumar stated in a web based interview from Chennai. “It’s the equal of the growth in India’s fairness markets within the Nineteen Nineties.”
Kumar, 39, based CredAvenue in late 2020. After graduating from the nation’s foremost rural administration institute, he labored abroad briefly earlier than turning right into a serial entrepreneur. CredAvenue is his fourth enterprise.
“Debt in India continues to be under-penetrated” as a share of GDP at about 60%, stated Kabir Narang, founding common accomplice at B Capital Group. At $1.9 trillion, the Indian debt market continues to be underserved, he stated, including that it “creates a large alternative.”
CredAvenue has surpassed $12 billion in gross transactions on its market and has over 2,300 enterprise clients, and greater than 750 lenders. Spocto is within the Center East market and can goal the U.S. market. CredAvenue intends to broaden domestically for the subsequent couple of years, Kumar stated.
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Supply: Live Mint