Debt market Credavenue announced on Monday the acquisition of a majority stake in the artificial intelligence-based debt collection platform Spocto Solutions for ₹400 crore.
The case was about ₹400 crore, under which Credavenue acquired a 75% stake in the five-year-old Spocto.
Credavenue said that after the transaction, it will now be the world’s leading debt marketplace that caters to all stages of the corporate lending lifecycle. Expanding its product offerings to include a digital collection solution for lenders will enhance its value proposition for the banking and finance industry, the company added.
The acquisition of Spocto will help mitigate risk and fraud by tracking absconding borrowers through any digital footprint to any corner of the world and it will help improve collection efficiency for low-cost customers, according to a company statement.
Spocto is a big data analytics company created to help with debt collection. It is a fintech that uses artificial intelligence (AI) and machine learning (ML) to improve customer reach, engagement and interaction; spocto is a pioneer in disrupting the debt collection industry with intelligence.
“Adding digital collection capabilities will add significant value to lending partners on the platform. This agreement is a forward integration that complements product suites across the entire lifecycle,” said the founder and managing director of Credavenue, Gaurav Kumar.
The acquisition will reduce the resources and time needed for collections while improving the collection rate and improving the overall quality of clients’ assets, he added.
“With a strong customer base of lenders and banks in India and overseas, this seamless integration towards broader operational transformation will help Spocto take it to the next level of growth,” said Sumeet Srivastava, Co-Founder and Director General of Spocto.
Never miss a story! Stay connected and informed with Mint. Download our app now!!
Comments are closed.