[Funding alert] Credgenics raises $25M in Series A round at over $100M valuation

This round is being led by Westbridge Capital and Tanglin Venture Partners among others, along with participation from existing investor Accel Partners.

Credgenics, a SaaS-based end-to-end debt resolution and legal automation platform, has received $25 million in a Series A round, and multiplied its valuation by 5.5 times to $100 million within just six months from its last fundraise. 

The financing round is led by investors Westbridge Capital and Tanglin Venture Partners, along with the participation of investors Ashneer Grover, Founder and CEO – BharatPe, Abhimanyu Munjal, MD and CEO – Hero Fincorp Group, Karthik Bhat, Founder – Force Ventures, Kushal and Gautam, Founders – Fareye. 

This round was also co-led by existing investor Accel Partners. The funds will be used to expand into new demographics, strengthen the R&D, scale the core operations across India, improve client services, and streamline the workflow. Credgenics manages over Rs 1580 crore of debt on its financial platform and claims to help the clients by improving the resolution rates by over 20 percent with an average 20-days reduction in the resolution time.

L-R: Rishabh Goel, Mayank Khera and Anand Agrawal

With a team of 150+ members, the Delhi-based startup collaborates with 2200+ legal counsels pan India for late stage delinquencies. The company works with banks like ICICI Bank, IDFC First, Axis Bank, and Kotak Bank, besides 40+ NBFCs like IIFL Finance, Loantap, DMI Finance, Clix Capital, Udaan, Moneytap, Moneyview, among others.

Commenting on the new financing round, Rishabh Goel, Co-founder and CEO, Credgenics, said, 

“In India, where the credit demand of more than $600 billion is being met through informal sources, digital lending is set to cross the $100 billion mark by the end of 2023. The increased disbursement of credit has led to a spike in the NPAs for both NBFCs and banks. The funds of the new financing round will be 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 added.

Founded in 2018 by IIT Delhi Alumni, Rishabh Goel, Anand Agrawal, and advocate Mayank Khera, Credgenics is aiming to solve India’s $200 billion bad debt problem. In 2020, the startup raised $3.5 million in a pre-Series-A round led by Accel Partners, DMI Alternatives fund with participation from then existing investors Titan Capital.

Anand Agrawal, Co-founder and CTO, Credgenics, added, 

“We have built a full stack technology infrastructure to digitise collection besides being equipped to handle volume mediations while improving overall debt collection efficiency. We provide a whole new lens with digitised collection solutions working seamlessly with an assisted data intelligent layer driven by AI/ML models built in-house. This funding would help us build the best product and technology team and unleash a set of new debt collection offerings.” 

In his comments, Rishit Desai, Principal, West Bridge, said, “We admire the vision and leadership skills of Rishabh, Anand, and Mayank in pioneering the use of technology to improve the financial services collections processes. In a short period of time, they have been able to attract the most prestigious banks and NBFCs as their customers.”

“Credgenics is addressing a massive pain point for the Indian financial ecosystem. Their success across a range of customers including large banks, NBFCs and fintechs clearly demonstrates the comprehensive and versatile nature of their technology platform and solution offerings. Rishabh, Anand and Mayank are exceptional founders with deep product thinking and rare execution capabilities. At Tanglin, we are privileged and extremely excited to be partnering with them,” stated Sankalp Gupta, Partner, Tanglin.

Edited by Anju Narayanan


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