Credgenics clocks robust revenue growth, eyes acquisitions
The debt collection and resolution platform is actively pursuing acquisitions in the areas of underwriting and risk assessment technologies to become a full-stack player in the lending technology value chain.
Despite challenges in the personal lending sector, debt collection technology platform Credgenics has clocked a robust revenue growth in FY25 and is poised for expansion and acquisitions.
The Noida-based company clocked a revenue of Rs 220 crore in FY25, growing 42% from Rs 155 crore in the previous year. It also reported a profit before tax of Rs 25 crore for the fiscal year.
The SaaS-based debt collection and resolution platform serves over 150 banks and non-banking financial companies (NBFCs) worldwide. It is sitting on a cash pile that exceeds the total equity capital it has raised across all funding rounds. It plans to deploy the funds for strategic acquisitions and international expansion.
"We have built a strong cash position, exceeding the total primary equity capital we've raised," Rishabh Goel, Co-founder and CEO of Credgenics, told YourStory. "Our business performance has allowed us to generate additional cash beyond the capital infused in our funding rounds," he added.
Although the personal lending sector in the country faced a challenging time last year, with loan disbursement volumes declining, Credgenics has managed to sustain growth by leveraging artificial intelligence and expanding into other lending segments such as business loans and commercial vehicle financing.
About 62% of the company's revenue comes from software solutions, while the rest comes from services.
"We saw a lot of traction on GenAI-based bots, a lot of manual intervention was reduced by a lot of technological intervention. 65% resolution in early stages happens digitally through bots, WhatsApp, multiple digital channels, and then remaining 35% flows to the human queue," said Goel.
This represents a significant change from earlier, when 80% of collection calls were made manually, he added.
Acquisitions and expansion
The company is actively pursuing acquisitions to become a full-stack player in the lending technology value chain.
"We are planning on becoming a full stack player, or doing more in our domain and adding infra layers in the entire lending function. We are looking at synergies in the risk side of collection," said Goel.
Potential acquisitions could be in the areas of underwriting and risk assessment technologies.
Credgenics has already commenced international expansion, establishing operations in Indonesia in 2022 with a 12-member team. The Indonesia operation has grown into a "Rs 15 crore to Rs 20 crore territory," according to Goel.
The company also entered the Middle Eastern market recently.
Focus on profitability
Unlike many startups that prioritise growth over profitability in the early stages, Credgenics says it has maintained a disciplined approach to capital deployment. The company has reported profit before tax of approximately Rs 25 crore for fiscal 2025, while its profit after tax in the previous year was Rs 8.38 crore.
"We obviously believe in the philosophy of running it profitably versus how other startups have done it," Goel noted. "From day one, we didn't have the mindset of compromising on profitability for growth, growth at any cost."
Market opportunity remains vast
Credgenics, which already serves over 150 active NBFCs and banks largely in the private sector, says there is still significant room for expansion.
"There are another 300 potential clients in the private sector alone that we haven't tapped into yet," said Goel.
The company is also making inroads into public sector banks, which has historically been a challenging segment.
With public sector banks constituting nearly 55% of India's retail lending market, successful penetration into the segment could significantly boost Credgenics' revenue going forward.
Looking ahead, Goel expresses confidence about the company's growth trajectory.
"This year, we are planning to double down in terms of the revenue numbers," he said.
Despite ongoing challenges in the personal lending sector, where regulatory tightening has impacted unsecured lending, Goel is optimistic.
"I don't see that (challenges) going away anytime soon, but overall growth of economy and India, and also the other lending products which are doing well, will provide opportunities for continued expansion."
(The copy was updated with revised figures from the company.)
Edited by Swetha Kannan