Exclusive: Credgenics to raise new round at $250-300 Mn valuation

Debt recovery and legal automation platform Credgenics is in advanced stage talks to mop up a new round led by new and existing investors, two sources aware of the development told Entrackr.

“Credgenics is finalising a new round at valuation that could be anywhere between $250-300 million,” said one of the sources on the condition of anonymity. “Westbridge is likely to lead the new round.”

The Noida-based startup had raised $25 million as a part of its Series A funding round led by Westbridge Capital, Tanglin Venture Partners, and Accel Partners in August 2021. The company was valued at $100 million post Series A funding.

According to sources, the company will raise anywhere between $40-50 million and the proceeds will be used for further expansion. Queries sent to Credgenics and Westbridge didn’t elicit any response. We will update the story in case they respond.

Caveat: The terms of the deal may change at the last moment.

Credgenics provides advanced loan collections and debt recovery technology solutions to banks, non-banking finance companies, ARCs and Digital lending firms worldwide. It helps lenders leverage its SaaS technology to boost their resolution rates, improve collections efficiencies and reduce non performing loans.

Its clientele base includes ICICI, Kotak Bank, IDFC First, Axis Bank, and multiple NBFCs like IIFL Finance, DMI Finance, Loantap, Udaan, MoneyTap et al.

Credgenics claims that it has handled 40 million retail loans and touched an overall loan book of $47 billion in FY22.

Credgenics’ revenue from operations stood at Rs 32.54 crore while its losses flew to Rs 8.26 crore for the fiscal year ending March 2023 (FY22). The company recently announced that it turned profitable and clocked about Rs 100 crore in revenue during FY23. For the fiscal year FY24, it aims to reach Rs 240 crore revenue mark.