PremiumBENGALURU: Debt recovery and legal automation platform, Credgenics, on Tuesday said it has raised $25 million as a part of its Series A funding round led by Westbridge Capital, Tanglin Venture Partners, and Accel Partners.
The round also saw participation of marquee angel investors, including Ashneer Grover, co-founder, BharatPe; Abhimanyu Munjal, managing director, Hero Fincorp Group; Karthik Bhat, founder, Force Ventures; Kushal Nahata and Gautam Kumar, founders, Fareye.
The funding comes after the startup had raised $3.5 million as a part of its pre-Series A funding in November last year. With its Series A fund raise, the company’s valuation stands at $100 million.
According to the company, funds raised will be used to expand into new demographics, strengthen its research and development (R&D) capabilities, and scale core operations across India.
Founded in 2018, Credgenics is a software-based loan collection and legal automation platform. It works with major private sector banks, such as ICICI Bank Ltd., IDFC First Bank Ltd., Axis Bank Ltd., Yes Bank, and 32 other non-banking finance companies to improve resolution rates on bad debt and improve return on investments for creditors.
“The funds of the new financing round will be utilised to find experienced professionals across all levels and build a world-class leadership team. We will further upgrade the core offerings, enhance product developments, and boost the R&D. The roadmap also includes International expansion beyond the Indian demographics. This includes a thorough R&D on the judiciary and fiscal measures prevalent there and then remedy their bad debts situation," said Rishabh Goel, co-founder and chief executive officer, Credgenics.
New Delhi-based Credgenics manages over Rs1,580 crore of debt on its financial platform at present. On the back of its software-based data management, the company claims to have increased creditor's return on investments by five times.
“We’re delighted to foster a new relationship with the Credgenics team. We strongly believe that Credgenics platform will help financial services organizations improve their collections processes and the financial burden of rising non-performing assets," said Rishit Desai, principal, West Bridge.
Currently, the Credgenics team comprises of 150 members, and it collaborates with more than 2200 legal counsels pan India for late stage delinquencies.
"Credgenics is addressing a massive pain point for the Indian financial ecosystem. Their success across a range of customers including large banks, NBFCs and fintechs clearly demonstrates the comprehensive and versatile nature of their technology platform and solution offerings," said Sankalp Gupta, partner, Tanglin Venture Partners.
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