Credgenics raises $25 million in Series A funding

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Updated: August 10, 2021 2:28 PM

The funding round was led by Westbridge Capital and Tanglin Venture Partners

The funds of the new financing round will get utilised to find experienced professionals across all levels, Rishabh Goel, co-Founder and CEO, Credgenics, said.

Debt resolution platform Credgenics has raised $25 million as a part of its Series A funding round led by Westbridge Capital and Tanglin Venture Partners. Its valuation has grown 5.5 times to $100 million within six months from its latest fundraise, the company said. Additionally, the round was co-led by existing investor Accel Partners. It will utilise the funds to expand into new demographics, strengthen the R&D, scale the core operations across India, improve client services, and streamline the workflow.

“The funds of the new financing round will get utilised to find experienced professionals across all levels and build a world-class leadership team. We will further upgrade the core offerings, enhance product developments, and boost the R&D. The roadmap also includes international expansion beyond the Indian demographics. This includes a thorough R&D on the judiciary and fiscal measures prevalent there and then remedy their bad debts situation,” Rishabh Goel, co-Founder and CEO, Credgenics, said.

According to Goel, the digital lending sector is set to cross the $100 billion mark in India by the end of 2023 where the credit demand of more than $600 billion is being met through informal sources. The increased disbursement of credit has led to a spike in the NPAs for both NBFCs and banks, he added.

Credgenics manages over Rs 1580 crore of debt on its financial platform and helps its clients by significantly improving the resolution rates by over 20% with an average 20-days reduction in the resolution time, the company claimed in a statement. The company works with banks like ICICI Bank, IDFC First, Axis Bank, and Kotak Bank, besides NBFCs like IIFL Finance, Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, among others.

The platform will help financial services organisation with improving their collection processes and the financial burden of rising non-performing assets, Rishit Desai, principal, West Bridge, stated. As per Sankalp Gupta, partner, Tanglin, Credgenics is addressing a massive pain point for the Indian financial ecosystem.

The round also saw participation from other investors like Ashneer Grover, founder and CEO, BharatPe; Abhimanyu Munjal, managing director and CEO, Hero Fincorp Group; Karthik Bhat, founder, Force Ventures; Kushal and Gautam, founders, Fareye.

Founded in 2018 by Rishabh Goel, Anand Agrawal, and Mayank Khera, Credgenics raised $3.5 million in 2020 led by Accel Partners, DMI Alternatives fund with participation from then existing investors Titan Capital.

Read Also: CRED’s Kunal Shah joins the board of Pine Labs

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