CredAvenue raises $ 90 million to develop construction infrastructure to fuel debt markets

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Fintech CredAvenue has closed its first $ 90 million funding round led by Sequoia Capital India and co-led by Lightspeed, TVS Capital Funds and Lightrock. The equity financing values ​​the company at around $ 410 million. Avendus Capital was CredAvenue’s exclusive financial advisor on the transaction.

CredAvenue builds an infrastructure to fuel the debt markets and offers discovery and execution solutions across a wide range of products. To date, he has facilitated approximately $ 9 billion worth of transactions through the platform, while engaging more than 1,500 institutional borrowers and 750 investors, reaching 1 million end retail borrowers.

Funds raised during this cycle will be used to expand product capabilities and accelerate the platform’s technology and data science infrastructure. The company aims to invest heavily in data science, machine learning and artificial intelligence over the coming months to significantly improve and expand its product offerings, across each of its sub-platforms. The company aims to move from a supported platform to a fully self-service platform, thereby improving the speed and autonomy of platform users.

“Our goal is to revolutionize the debt market through technology and innovation,” said Gaurav Kumar, founder and CEO of CredAvenue. “We are the only corporate debt platform offering all forms of debt, both in India and globally, and this is reflected in the scale of business carried out by our platform since its inception. “

CredAvenue, which has followed a hyper-growth trajectory over the past year, now has more than 350 employees across different verticals – technology, sales, marketing, strategy, HR. It plans to double its workforce to 700 by the end of FY22. The company also anticipates global expansion and inorganic growth through strategic acquisitions.

“We are delighted to partner with them (CredAvenue team) in their vision to deepen the debt markets in India, which currently remain underdeveloped at 65% of GDP, well below the global average of 150%” said Sakshi Chopra, MD, Sequoia India.

The company is one of the only fintech platforms with deep technology integrations across the top ten banks and mutual funds in India, representing over $ 1,000 billion in loan assets, which constitute the heart of the establishment of financial services in the country.

CredAvenue’s goal is to transform debt markets globally, starting with India, by deepening access to capital for the growing corporate sector to unlock meaningful economic growth. It does this by doing three things. First, create a transparent market for financial services companies on the one hand and businesses on the other to discover lending and borrowing opportunities. Second, develop a robust product suite and credit scoring mechanism to enable stakeholders to find a risk-appropriate product that will last, creating a robust, low-friction user experience that not only automates the execution of the transaction, but also offers continuous portfolio monitoring.

The company said it has already achieved market leadership in various categories of debt, including co-lending, loans and bonds. It simplifies access and maintenance and helps consumers navigate seamlessly between multiple offerings through a single portal.

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