Online Loan Startup CredAvenue Secures $137 Million in Funding Round Led by B Capital Group & Others

CredAvenue, an online loan marketplace, has secured $137 million in a new round headed by New York-based Insight Partners, B Capital Group, and Dragoneer, making it the latest Indian unicorn.

The round, which included existing investors as well, boosted the company's worth to $1.3 billion. In September 2021, it was valued at $410 million. As part of the acquisition, Nikhil Sachdev, managing director of Insight Partners, will join CredAvenue's board of directors.

CredAvenue now joins the ranks of other Indian firms such as Mamaearth, Lead School, Fractal, Elastic Run, and Livspace, which have all achieved unicorn status in 2022.

Sequoia Capital, Lightspeed Ventures, TVS Capital, and Lightrock led a $90 million funding round for CredAvenue in September 2021.

The proceeds from the latest round are likely to be used to scale the company's infrastructure and expand the breadth of its offerings. It also intends to use the cash to expand its operations in important worldwide areas, as well as to pursue inorganic growth through acquisitions.

CredAvenue currently has five credit platforms: CredCoLend, which is a co-lending platform for banks and non-banking financial companies (NBFCs); CredLoan, which provides term lending and enterprise working capital solutions; CredSCF, which is a trade financing platform; Plutus, which is a bond issuance platform; and CredPool, which is a portfolio buyout solution for financial institutions.

B Capital Group's founding general partner, Kabir Narang, said, “At $1.9 trillion, the Indian debt market is still underserved. CredAvenue helps automate and increase efficiency across the value chain. This is reflected in the strong retention amongst borrowers and repeat deals with investors.”

Currently, the firm works with approximately 2,300 businesses and 750 lenders. To date, it has facilitated loan volumes of over INR 90,000 crore, according to the company. The company announced the acquisition of Spocto in February to broaden its product offerings. CredAvenue hoped that the acquisition would enable it to provide digital collection solutions to lenders on its platform, as well as help them combat fraud.