Chennai-based startup CredAvenue has raised $137 million in a Series B round of funding. In the Series B funding round Insight Partners, B Capital Group, and Dragoneer Investment Group participated. The valuation of the company is measured at $1.3 billion post-money, a 3X jump from its $410-million in the month of September last year.
Some of the returning investors also participated in the round. In the list of returning investors, we can see Sequoia Capital, Lightspeed Ventures, TVS Capital, and Light rock.
CredAvenue was incorporated in 2021 by Gaurav Kumar and Vineet Sukumar (Co-founder and CEO of CredAvenue) as a subsidiary of financial services marketplace Vivriti Capital. CredAvenue was expected to double the pool of capital for Employee Stock Ownership Plan (ESOP) up to Rs 500 crore across two separate programs.
Through the sources, it’s come to know that the startup will utilize the capital in building its collection infrastructure. In February, the company had acquired spocto, a majority stake in a digital collection solution provider.
The utilization of fresh capital will be done in the following fields:
“By leveraging a next-gen business intelligence and data-collection platform, CredAvenue enables efficient match-making and minimizes manual and recurring efforts in underwriting, executing, and monitoring debt,” said Nikhil Sachdev, Managing Director of Insight Partners. He will also join the company board.
In numbers, the startup is spread over 2,300 corporates and links them to over 750 lenders. It has a loan book of over Rs 90,000 crore.