CredAvenue, which is an Indian company that specializes in securing debt for companies, has achieved the status of the fastest Indian startup to become a unicorn club member. This start-up has been operating for two years and has raised $137 million in Series B financing, led by Dragoneer, B Capital Group, and Insight Partners. This company was founded by the confounder of Vivriti Capital, Gaurav Kumar, at $1.3 billion.
The startup includes Lightspeed Venture Partners, TVS Capital, Sequoia Capital India, and others. These companies together have raised an amount of $227 million.
Gaurav Kumar mentioned in an interview with TechCrunch that he had managed three startups before CredAvenue and has been associated with the lending space for more than 16 years. CredAvenue has created the most suitable technology stack to take care of all activities from debt disbursal to collection.
This company also provides term loans and working capital solutions to different companies. It has also partnered with banking and financial institutions who does not operate as banks to co-lend and develop a platform for issuing bonds to retail enterprises and institutions. In addition, it provides portfolio buyouts, trade financing and end-to-end securitization.
Gaurav Kumar has said that if enterprises prefer direct financing, they can opt for loan stack, ABS stack and bond stack. However, if the company prefers indirect loans, then it can opt Co-ending platform and bring retail customers.
When a bank or an enterprise partner with the company, they get access to the whole network of CredAvenue. The company has already started to acquire different startups like Spocto. However, the company will continue to operate in India. CredAvenue has been able to issue loans for more than $10.5 billion. This company works with over 2300 corporates, 750 lenders and 450 enterprises.
Kabir Narang, the Founding General Partner of B Capital Group, has said that CredAvenue is trying to bring together investors and lenders, which can help facilitate and track debt products. In India, the proportion of debt still makes up to 60% of the GDP.
The Indian debt market is still underserved at $1.9 trillion. CredAvenue is trying to automate and boost the debt market in India in an efficient manner. This is evident in their ability to retain borrowers and repeat deals with investors.