Cred to acquire lending-as-a-service firm CreditVidya

  • The deal to buy Kalaari Capital and Matrix Partners-backed CreditVidya is a mix of cash and stock and will be completed only after required approvals

Malvika Maloo
Published29 Nov 2022, 04:21 PM IST
Cred founder Kunal Shah.
Cred founder Kunal Shah. (Mint)

Tiger Global-backed fintech unicorn Cred on Tuesday said it will acquire a 100% stake in CreditVidya, a Kalaari Capital and Matrix Partners-backed company that offers lending as a service, for an undisclosed amount.

The deal is a mix of cash and stock and will be completed only after required approvals, the company said in a statement. The financial details of the deal weren’t disclosed.

CreditVidya’s acquisition comes about two months after the Kunal Shah-led fintech said it is looking to pick a minority stake in its Mumbai-based lending partner LiquiLoans. Last year, it acquired expense management startup Happay in December and liquor delivery startup HipBar Pvt Ltd in October.

“Expanding access to credit is a key driver for financial progress. CreditVidya's patented tech stack uncovers signals of trust among under-served cohorts,” said Shah, founder, Cred, in a statement.

The acquisition allows Cred to expand its customer base and ecosystem as CreditVidya, which caters to customers who do not have a credit score.

“We’ve invested in building products that bring financial services to credit under-served Indians through our partners, transforming how risk is assessed and trust measured to drive financial inclusion,” Abhishek Agarwal, co-founder and chief executive of CreditVidya, said.

Hyderabad-based CreditVidya was founded in 2012 by Agarwal and Rajiv Raj. It offers a software-as-a-service platform that allows businesses to embed customised credit products. Since inception, the company has raised about $10 million in funding, and was last valued at $30 million.

“In our next phase of our growth, as we build brand and scale distribution, we are excited to learn from the CRED team,” Agarwal added.

As a part of the acquisition deal, the two firms will continue to operate independently. CreditVidya’s 200+ team members will get all the benefits extended to Cred team members, including its employee stock-option program.

Founded by serial entrepreneur Kunal Shah in 2018, Bengaluru-based Cred started as an app that lets users pay credit card bills and rewards them in the form of “Cred” coins, which can be redeemed across many partner businesses. Since then, the firm has diversified into lending and e-commerce.

Last month, the company launched ‘Scan and Pay’ under the Unified Payments Interface (UPI) platform, foraying into the wider payments business, to compete with the likes of PhonePe, GooglePay (Gpay), Paytm and government-backed Bhim UPI mobile applications, among others.

It is backed by marquee investors such as Singaporean wealth fund GIC, Tiger Global, FalconEdge, Sofina Ventures, Insight Partners, Coatue and Dragoneer among others.

 

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:29 Nov 2022, 04:21 PM IST
Business NewsCompaniesStart-upsCred to acquire lending-as-a-service firm CreditVidya

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    149.70
    07:18 PM | 1 NOV 2024
    1.05 (0.71%)

    Indian Oil Corporation share price

    145.00
    07:19 PM | 1 NOV 2024
    2.3 (1.61%)

    Tata Power share price

    445.20
    07:19 PM | 1 NOV 2024
    5.15 (1.17%)

    Bandhan Bank share price

    183.65
    07:10 PM | 1 NOV 2024
    1.4 (0.77%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,545.00
    06:59 PM | 1 NOV 2024
    -67.25 (-4.17%)

    ICICI Securities share price

    833.45
    06:59 PM | 1 NOV 2024
    -32.85 (-3.79%)

    Vijaya Diagnostic Centre share price

    966.70
    06:59 PM | 1 NOV 2024
    -30.35 (-3.04%)

    Narayana Hrudayalaya share price

    1,235.60
    06:59 PM | 1 NOV 2024
    -36.75 (-2.89%)
    More from Top Losers

    Brigade Enterprises share price

    1,244.80
    07:19 PM | 1 NOV 2024
    71.75 (6.12%)

    PCBL share price

    432.15
    07:17 PM | 1 NOV 2024
    21.35 (5.2%)

    Piramal Pharma share price

    281.85
    07:17 PM | 1 NOV 2024
    13.45 (5.01%)

    Jubilant Pharmova share price

    1,273.00
    06:59 PM | 1 NOV 2024
    60.65 (5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,415.00-150.00
      Chennai
      80,421.00-150.00
      Delhi
      80,573.00-150.00
      Kolkata
      80,425.00-150.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L-0.43
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts