Indian Fintech CredAvenue Secures $137M from Insight Partners, B Capital, Others

Indian Fintech firm CredAvenue has achieved Unicorn status (valued at $1 billion+) after raising funds from Insight Partners, B Capital, Dragoneer Investment Group, and others.

The Chennai-headquartered Fintech is now valued at $1.3 billion.

The Fintech company plans to use the proceeds to further expand its business operations across India as well as international markets. This will be done by acquiring various companies so that CredAvenue can add more services and integrate additional products.

The Fintech firm is now the latest Unicorn after finalizing its Series B round which was led by New York’s Insight Partners.

The firm’s investment round included contributions from new investors like BYJU’s and Meesho’s supporter – B Capital. CRED backer Dragoneer Investment Group also took part in the round.

The funding round was also joined by Sequoia Capital, Lightrock, Lightspeed Ventures, and TVS Capital, among other investors. With this latest capital injection, CredAvenue’s valuation has surged to $1.2 billion.

As reported by Inc 42, CredAvenue has set aside a total of 1,05,90,170 Series B CCPS and 10 equity shares to six of these investors.

The funding round size could increase to include a debt element to it as well, the update confirmed.

With this raise, Insight Partners will be holding 5.9%, and B Capital will maintain a 2.3% stake in the firm on a fully diluted basis. Vivriti Capital, whose subsidiary is Credvenue, will remain the biggest shareholder with a 50.5% stake and Sequoia Capital is listed as the second largest stakeholder at 7.79%.

Established by Gaurav Kumar in 2017, CredAvenue is a debt platform that links up business enterprises with lenders and investors. CredAvenue has now reported $1.5 billion in transaction value along with $6 million in revenue in FY21. The firm is now expected to achieve more than $7 billion transaction value with $22 million in revenue by FY22.

CredAvenue previously secured $90 milion via its Series A in September 2021. The round was led by Sequoia Capital, along with contributions from Lightrock, Lightspeed Ventures, Kunal Shah’s Cred and Stride Ventures.

CredAvenue’s valuation had surged to $410 million after its Series A. The firm has also acquired a 75.1% stake in Mumbai’s Spocto, an AI-enhanced debt recovery platform.

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