Decoding CredAvenue’s $90 Mn Series A round and shareholding

Business-focused lending marketplace CredAvenue had recently announced a $90 million Series A round led by Sequoia Capital. While it was one of the largest Series A financing rounds (equity round) ever raised by an Indian startup, the company didn’t disclose details such as round break-up, valuation and shareholding structure.

Fintrackr has decoded the largest Series A round through regulatory filings. The company has passed a special resolution to allot 1,88,45,083 preference shares and 70 equity shares at an issue price of Rs 351 per share to raise Rs 661.5 crore or close to $90 million.

Sequoia led the round with Rs 257.3 crore while Lightspeed has put in Rs 147 crore. TVS Shriram has invested Rs 121.3 crore whereas LightRock and Kunal Shah’s CRED participated in the financing round with Rs 106.6 crore and 29.4 crore, respectively.

According to Fintrackr’s estimate, the Chennai-based company has been valued Rs 3,050 crore or $410 million (post-money).

Following the allotment of this round, Vivriti has emerged as the largest stakeholder with 58.30%. Founded by CredAvenue’s team, Vivtri is a non-banking financial corporation (NBFC) backed by Lightstone. Gaurav Kumar and Vineet Sukumar are co-founders in the Chennai-based NBFC.

Sequoia owns 8.54% while Kumar and Sukumar hold 7.77% each in CredAvenue. Lightspeed and LightRock command 4.88 and 3.52% respectively. Please refer to the pie chart for the complete shareholding structure.

CredAvenue’s platform connects businesses seeking loans with financial institutions and other investors. Its solutions include vendor and dealer financing, and a bonds marketplace that provides access to exclusive primary and secondary bonds. According to the company’s website, it has an association with more than 500 banks and NBFCs to facilitate loans to over 1,000 enterprises.

FY20 was the first year of operations for CredAvenue in which it had generated operating revenue of Rs 24.93 crore and lost Rs 6.65 crore during this period.  

CredAvenue’s funding was the largest Series A round for any startup in India in terms of equity financing. In July, e-commerce roll-up company GlobalBees had scooped up $150 million in its Series A round which included $75 million debt. The top Series A funded startups also include Ola Electric, Mensa and Fampay.

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