Accel-backed Credgenics, a Saas-based debt collection and resolution platform, is on track to turn profitable at the end of this financial year, its co-founder and chief executive officer (CEO) Rishabh Goel told FE in an interaction.
“In the first year of our operations, we were able to report a profit of around Rs 50-60 lakh, but then a lot of investments were made in HR, technology, product and R&D. We broke even at a monthly level earlier this year and by the end of this year, we should be at net profitability,” Goel said.
The company also plans to more than double to its topline in FY24 to Rs 200-250 crore, from over Rs 100 crore in FY23, banking on the adoption of its debt resolution solutions such as digital collections, litigation management, field collections mobile app and more.
Credgenics has over a 100 customers in India and Indonesia including financial institutions such as ICICI bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance. The company is currently managing 60 million retail loan accounts, with a monthly loan book value of $5 billion.
Within its customer base, banks and NBFCs together form about 80%, while fintechs hold the rest. “In terms of penetration, I think there are some regions like Chennai and Jaipur where there is a huge penetration of NBFCs, but we are not there yet in many of them,” Goel said.
Credgenics is expecting to see a strong uptake of its debt resolution offerings in the later quarters of this financial year, when retail lending activity is higher because of festive season spending.
“I think in the first two quarters, the pace of lending is slower in comparison to the last two quarters, when both consumer and MSME credit demand is higher. A lot of agri-based financing also happens towards this harvesting season,” he said.
The company has till date raised $75 million from investors such as Westbridge Capital, Tanglin Venture Partners and Accel Partners. It recently raised $50 million in a series B funding round led by these investors, putting it at a valuation of $340 million.