CredAvenue turns unicorn after $135 Mn Series B round

Online debt platform CredAvenue has raised $137 million in its Series B round led by Insight Partners, B Capital Group and Dragoneer with participation from existing investors.

According to CredAvenue, it has scooped up the new round at $1.3 billion valuation. The company has become the 11th unicorn of 2022 after Mamaearth, Fractal Analytics, LEAD, Darwinbox among others. It also joined the likes of e-commerce roll-up companies GlobalBees and Mensa to turn unicorns at Series B stage.

The Chennai-based company had announced a $90 million Series A round led by Sequoia Capital in September last year. As per Fintrackr’s estimates, it was valued at around $410 million during the last round.

Insight Partners has invested Rs 570.01 crore in this round followed by B Capital, Dragoneer and Lightspeed with Rs 225 crore, Rs 75 crore and Rs 50.4 crore investment respectively, according to CredAvenue’s regulatory filings. Sequoia and  TVS Shriram Growth Fund have put in Rs 37.5 crore each whereas Lightrock has invested Rs 33 crore.

Following the fresh allotment of shares, Vivitri Capital has 50.52% stake in CredAvenue followed by Sequoia and Insight Partners. The complete shareholding pattern of the company can be seen below:

CredAvenue will use the fresh proceeds to expand its business in India along with key global markets by acquiring diverse companies, said the company in a statement. It will also enhance its technological capabilities by investing in technology innovation, AI, ML, and data analytics.

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.

It currently has more than 2,300 corporates, 750 lenders on its platform and has facilitated debt volumes of over Rs 90,000 crore. It also claims that the size of debt facilitated on its marketplace ranges from Rs 50 crore to Rs 3,000-Rs 4,000 crore.