Indian fintech CredAvenue reaches unicorn status
CredAvenue, the debt market, is India’s newest unicorn, having raised $137 million in a funding round, Bloomberg reported on Sunday (March 6).
FinTech is headquartered in Chennai and connects businesses with lenders and investors. Its value rose to $1.3 billion from $410 million last September.
This means it is India’s fastest FinTech unicorn, with 18 months between its inception and this new valuation.
The company provides digital technology solutions for the debt cycle, from disbursement to collection.
The most recent round was led by Insight Partners, B Capital Group and Dragoneer.
CredAvenue said it plans to use the new funding to expand into India as well as other key global markets – it recently bought Spocto, which specializes in technology to support collections.
“The Indian debt market will shift into hyper-growth mode…provided the digital debt infrastructure supports growth,” Founder and CEO Gaurav Kumar said in an online interview from Chennai. “It’s the equivalent of the Indian stock market boom of the 1990s.”
The Bloomberg report noted the increase in funding from Indian e-commerce and technology companies, which led to a unicorn-making frenzy in 2021. With more investment from venture capitalists, Bloomberg reported that this could continue this year.
Read more: Indian social commerce platform DealShare has achieved unicorn status; Valued at $1.6 billion
PYMNTS noted that DealShare, the social commerce grocery startup, was another recent Indian unicorn, with Dragoneer also investing there.
DealShare was India’s fifth unicorn in January.
DealShare planned to use the money for technology and data science spending, as well as expanding its logistics infrastructure and building a franchise network of offline stores.
The company was founded in 2018 and sells basic necessities to middle-income people with a community buying model.