Debt platform CredAvenue on Sept 29 said it has raised $90 million in equity capital in a funding round led by Sequoia Capital, and co-led by Lightspeed, TVS Capital Funds, Lightrock and others. The funding values the company at approximately $410 million.
CredAvenue operates a platform that connects corporates seeking loans with financial institutions and other investors who can facilitate such debt offerings through various instruments. To date, the startup has facilitated transactions worth around $9 billion through the platform, engaging with over 1,500 institutional borrowers and more than 750 investors and 1 million end-retail borrowers.
The funds raised in this round will be used to expand product capabilities and ramping up the platform’s technology and data science infrastructure. The company aims to invest heavily in data science, machine learning and artificial intelligence over the next few months to significantly improve and expand its product offerings, across each of its sub platforms.
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“At CredAvenue, our objective is to revolutionize the debt market through technology and innovation. We are the only enterprise debt platform offering all forms of debt, both in India and globally and this reflects in the scale of business done by our platform since inception. The business earns from both enterprises and lenders who pay for using the company’s platform to connect and execute transactions. “Ours is a very high margins business. Our gross margins are currently upwards of 70 percent,” said Gaurav Kumar, Founder & CEO, CredAvenue, said.
CredAvenue has over 350 employees spanning across different verticals – technology, sales, marketing, strategy, HR. It expects to double its headcount to 700 by the end of FY22. The company also plans on global expansion and inorganic growth through strategic acquisitions.
The organization has a portfolio of five platforms catering to both borrowers and investors: CredLoan – term lending and working capital solutions for enterprises; CredCoLend – for banks and NBFCs for co-lending partnerships; Plutus – bond issuance and investment for institutional and retail participants; CredSCF – trade financing solutions and CredPool – end-to-end securitisation and portfolio buyouts.
In addition, the company also offers portfolio management and monitoring services as a SaaS offering to its borrowers and lenders.
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