CredAvenue is an Indian company that specializes in the securing of debt for companies. It has been named the fastest Indian startup to join the unicorn club. The start-up has been in operation for two years. It has raised $137m in Series B financing from Insight Partners, B Capital Group, and Dragoneer. Gaurav Kumar, the founder of Vivriti Capital, founded this company for $1.3 billion.
Lightspeed Venture Partners and TVS Capital are part of the startup. Together, these companies have raised $227 million.
In an interview with TechCrunch, Gaurav Kumar stated that he has managed three startups prior to CredAvenue and that he has been involved in the lending industry for over 16 years. CredAvenue is the best technology stack for handling all aspects of debt collection, from disbursal to collection.
The company offers working capital solutions and term loans to various companies. It also partners with financial institutions that are not banks to co-lend money and create a platform to issue bonds to institutions and retail businesses. It also offers portfolio buyouts and trade financing, as well as end-to-end securitization.
Gaurav Kumar stated that enterprises can choose between loan stack, ABS stack, and bond stack if they prefer direct financing. If the company prefers to borrow indirect money, it can choose a Co-ending platform to bring in retail customers.
CredAvenue gives access to all the networks for banks and enterprises that partner with the bank. Spocto is one of the startups that the company has acquired. The company will still be active in India. CredAvenue has been able to issue loans worth more than $10.5 million. The company has over 2300 corporate clients, 750 lenders, and 450 enterprise partners.
Kabir Narang is the Founding General Partner at B Capital Group. He stated that CredAvenue aims to connect investors and lenders. This will allow them to facilitate and track debt products. India’s debt proportion is still at 60% of the GDP.
At $1.9 trillion, the Indian debt market remains underserved. CredAvenue is working to automate the Indian debt market and increase its efficiency. They are able to retain borrowers and make repeat deals with investors.