Chennai-based debt marketplace CredAvenue has raised $137 million in Series B funding at a $1.3 billion valuation. Insight Partners led this round of funding at a valuation of $1.3 billion.
New investors B Capital Group and Dragoneer, along with existing investors Sequoia Capital, Lightspeed Ventures, TVS Capital, and Lightrock, also participated in the round.
Post the fundraise, the fintech startup has become the latest to enter the unicorn club to become the fastest Indian fintech startup to join the billion-dollar club within 18 months of being established, the firm said.
Gaurav Kumar, founder and chief executive, CredAvenue, said that the company expects hyper-growth over the next few years. CredAvenue plans to use the capital to expand its business and acquire companies. The company recently acquired Spocto, a digital collections firm with a global footprint.
CredAvenue will also enhance its technological capabilities. Insight Partners managing director Nikhil Sachdev will join CredAvenue’s board.
“By leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimizes manual and recurring efforts in underwriting, executing and monitoring debt,” said Insight Partners managing director Nikhil Sachdev.
The startup, Sequoia Capital India, Lightspeed Venture Partners, TVS Capital, Lightrock, Vivriti Capital and Indian fintech CRED, among its backers, will use the funds to expand its business in India with key global markets and will also deepen its technological capabilities.
“Debt in India is still under-penetrated as a percentage of gross domestic product at about 60 percent. This creates a massive opportunity for a leading player like CredAvenue. At $1.9 trillion, the Indian debt market is still underserved. CredAvenue will help automate and increase efficiency,” said Kabir Narang, founding general partner, B Capital Group.
The firm claims to be clocking a cumulative Gross Turnover Volume (GTV) of over $12 billion. Currently, CredAvenue claims to have facilitated debt funding of over INR 90,000 crore to over 2,300 corporates with more than 750 participating on its platform. Recently, the company acquired artificial intelligence and machine learning-powered debt recovery platform Spocto Solutions.
