[Funding alert] Accel Partners leads Rs 27 Cr pre-Series A round in debt resolution startup Credgenics
New Delhi-based debt resolution startuphas raised Rs 27 crore ($3.5 million) in a pre-Series A round led by Accel Partners, DMI Alternatives fund with participation from existing investors Titan Capital.
Marquee angel investors like Kunal Shah (Founder,); Dilip Khandelwal (MD and Global CIO, Deutsche Bank); Sumit Maniyar (Founder, ); Ramakanth Sharma (Co-founder, ); Gaurav Agarwal (Co-founder, ); Vivekananda Hallekere (Co-founder, ); Akhil Paul (MD, Caparo Group); Nitin Gupta (ex-Founder, PayU); and Karthik Bhat (Ubiquity Capital) also participated in the round.
“With default rates touching 60 percent in India due to COVID-19 pandemic, lenders are looking to contain/manage collections effectively. We are the only ones with a full stack technology infrastructure to digitise their collection and legal process besides being equipped to handle volume collections while improving overall efficiency. Funds will be utilised to enhance product development, strengthen R&D and scale the operations across India,” said Rishabh Goel, CEO and Co-founder, Credgenics.
Anand Agrawal, Co-founder and CTO, Credgenics, further added that “We accelerate the debt recovery process through use of existing default data while creating new ways of communicating with defaulters and tracking the communication.”.
Founded in 2018 by IIT Delhi alumni Rishabh Goel, Anand Agrawal, and Mayank Khera, Credgenics is a SaaS-based collections and legal automation platform aiming to solve India’s $200 billion+ bad debt problem. The startup is already working with all the major private sector banks including ICICI Bank, IDFC First, Axis Bank, and Yes Bank and over 32 NBFCs including Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, etc.
In his comments, Pratik Agrawal, Vice-president, Accel Partners, said,
“Debt management processes for lending institutions have traditionally remained a largely manual and archaic process with limited disruption through digitisation. With a team that is uniquely positioned to execute this, Credgenics has established itself as a thought leader in the space.”
According to Bipin Shah, Partner, Titan Capital, “Credgenics is definitely on a mission to solve Bharat’s growing bad loans collections problem, which let us close the seed round last year into the company within a week. We couldn't have got a better team to solve this. This funding round is another validation of their unique value proposition and its immense potential.”