CredAvenue Joins The Unicorn Club With $137M Series B Funding
CredAvenue, a digital platform that connects businesses with lenders and investors, secured $137 million in new funding in its Series B round, the company said in a statement on Monday. .
By Salman SH
CredAvenue, a digital platform that connects businesses with lenders and investors, secured $137 million in new funding in its Series B round, the company said in a statement on Monday. .
The round was led by New York-based global private equity and venture capital firm Insight Partners, B Capital Group and Dragoneer, with participation from existing investors.
The fintech startup is now valued at $1.3 billion in its Series B round, making it one of the newly created unicorns this year. India’s startup ecosystem has hit around 11 unicorns this year alone, with a total of 92 unicorns registered so far, according to private deal tracker Venture Intelligence.
Founded in 2017 by Gaurav Kumar and Vineet Sukumar, the company was initially established as a subsidiary of Vivriti Capital Private Limited (VCPL). CredAvenue claims to have helped over 2,300 businesses raise debt from over 750 lenders. To date, it has facilitated debt volumes of over Rs 90,000 Crores.
Currently, the startup offers five different platforms for borrowers and investors, including services such as term loans, co-loans, trade finance and portfolio buyouts. Additionally, the company also offers portfolio management and monitoring services as a SaaS offering to its borrowers and lenders.
CredAvenue intends to use the funds to grow the business in India as well as in major global markets organically and inorganically by acquiring various companies for upstream and downstream service and product integration. The start-up will also use the funds to improve its technological capabilities by investing in deep technological innovations, AI, ML and data analysis.
“CredAvenue, which has a solution for every stage of the debt product lifecycle, expects to catapult itself onto a hyper-growth trajectory over the next few years to make a difference for all market players in Indian debt and bring an unprecedented transformation, akin to the equity markets of the 1990s, to the way a typical debt life cycle is managed in India.We are paving the way for the Indian debt market to realize its full potential, and we expect to soon become a leading player in global debt markets with our unique and diverse product suites,” said Gaurav Kumar, Founder and CEO of CredAvenue, in a statement.
“We are excited about CredAvenue’s value proposition of bringing investors and borrowers to a one-stop-shop ecosystem to discover, facilitate and track debt products. I have had the privilege of knowing Gaurav for several years, and it is exciting to support the strong team digitizing the Indian debt markets. Debt in India is still under-penetrated as a % of GDP at around 60%. This creates a huge opportunity for a top player like CredAvenue,” added Kabir Narang, Founding General Partner of B Capital Group.
