CredAvenue, an online platform for raising corporate debt, is in discussions to raise a $150 million Series B investment, valuing the company at over a billion dollars, according to people familiar with the situation who asked to remain anonymous.

Insight Partners, one of the world's most active new tech investors, and Tiger Global Management are in discussions to lead the deal, which will take place less than six months after the company's initial investment round, which was valued at over $400 million in September of last year. Sequoia Capital and Lightspeed India, two existing investors, will also contribute.

CredAvenue, which was spun off from lender Vivriti Capital and was formed by Gaurav Kumar, brings together banks and non-bank lenders to co-lend, offers asset-backed loans, and debt using bonds or supply chain finance. It has over 500 lenders on its platform and has processed over INR 85,000 crore in transactions. CredAvenue provides an API (Application Program Interface) plug-in to its borrowers, converting it into a software platform in addition to providing underwriting services to lenders on its platforms.

According to sources close to the sale, the business is presently generating annual revenue of $25-30 million, or around $2.5 million (Rs 15 crore) every month. This would place the latest round's valuation at over 40 times sales, putting it in the top end of software valuations at a time when other publicly traded software and fintech businesses' stock prices are expected to plummet in 2022.

Kumar from CredAvenue rejected the news, while Tiger declined to comment and Insight did not reply to a request for comment.

After India has already created seven unicorns seven weeks into the year, a completed deal would make the business a unicorn (private IT companies valued at over a billion dollars).

CredAvenue, based in Chennai, recently purchased a 75% stake in Spocto Solutions, a Mumbai-based artificial intelligence and machine learning-powered debt recovery platform, for about $50 million in order to provide an additional feature to its client banks and institutions in addition to providing a marketplace.