The round, which also saw participation from existing investors, catapulted the company’s valuation to $1.3 billion. It was last valued at $410 million in September 2021. Nikhil Sachdev, managing director at Insight Partners, will join CredAvenue’s board as part of the deal.
With this, CredAvenue joins the likes of other Indian startups such as Mamaearth, Fractal, Lead School, Elastic Run and Livspace that have entered the unicorn club in 2022.
CredAvenue raised $90 million in September 2021 in a round led by Sequoia Capital, Lightspeed Ventures, TVS Capital and Lightrock.
The company is expected to use the proceeds from the latest round to scale its platform and improve the depth of its offerings. It also plans to use the funds to expand its business across key global markets, while looking to grow inorganically through acquisitions.
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At present, CredAvenue has a portfolio of five credit platforms: term lending and enterprise working capital solutions provider CredLoan; co-lending platform with banks and non-banking financial companies (NBFCs) CredCoLend; bond issuance platform Plutus; trade financing platform CredSCF; and portfolio buyout solution for financial institutions CredPool.
“At $1.9 trillion, the Indian debt market is still underserved. CredAvenue helps automate and increase efficiency across the value chain. This is reflected in the strong retention amongst borrowers and repeat deals with investors,” said Kabir Narang, founding general partner at B Capital Group.
The company currently works with over 2,300 corporates and over 750 lenders. It said it has facilitated debt volumes of over Rs 90,000 crore to date.
In February, the company announced the acquisition of Spocto to expand its product offerings. The acquisition was expected to help CredAvenue offer digital collection solutions to lenders on its platform and help them curb fraud.
