Debt marketplace CredAvenue, which helps businesses and enterprises secure debt from lenders, has become the fastest Indian startup to join the unicorn club.
The two-year-old startup has raised a $137 million Series B financing round. The round values CredAvenue at over $1 billion, up from about $410 million in September last year.
The startup has raised over $227 million to date, with the help of a number of backers.
Businesses face a lot of challenges when they need to raise debt.
Kumar has spent over 16 years in the lending space, and this is his fourth startup.
CredAvenue has built India's most comprehensive technology stack to meet business' complete debt cycle from disbursing to collections.
It operates platforms for giving term loans and working capital solutions to enterprises, origination platform for banks and non-banking financial institutions to partner for co-lending, and bond platform for helping institutional and retail participants for bond issuance. It also offers trade financing and end-to-end securitisation.
If you prefer direct finance, you can come to our loan stack. If you have indirect financing needs, you can use the co-ending platform to bring in retail customers. He said that their customers are any enterprise with revenue of more than a million dollars.
You get access to everyone sitting on our network if it is a bank on the lender side or a borrowers side. Our offering is about interoperability. We are paving the way for India's debt market to realise its full potential, and we plan to soon be a leading player in the global debt markets with our unique and diversified product suites.
It recently acquired a collection startup that has operations in three markets. Kumar said that the startup plans to continue to focus on India.
Kumar said that CredAvenue has helped facilitate loans of over $10 billion. He said that over 2,300 corporates, 450 enterprises and 750 lenders are active on the platform. The startup plans to use the fresh funds to expand its business in India and is also looking to acquire companies to fuel its growth.
We are excited about CredAvenue's value proposition of bringing investors and borrowers on a single window to discover, facilitate and track debt products. I have known Gaurav for a long time, and it is exciting to support the team that is digitising Indian debt markets. India's debt is still under-penetrated as a percentage of GDP. This creates a huge opportunity for a player like CredAvenue, according to a statement from the Founding General Partner of B Capital Group.
The Indian debt market is still underserved. CredAvenue helps increase efficiency in the value chain. The retention of borrowers and repeat deals with investors is reflected in this. We like their approach to solve the problem. Beyond the business, what is even more exciting is the mission and impact they are having by providing access to debt.
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