CredAvenue raises $137 million, turns into fastest fintech unicorn at $1.3 billion

CredAvenue has raised $137 million in a Series B round that values the online debt marketplace at $1.3 billion within 18 months of inception, the fastest a fintech startup has turned a unicorn in the country, the company said on March 6.

The round was led by Insight Partners, B Capital Group, and Dragoneer, with participation from existing investors, the Chennai-based startup said. A unicorn is a privately funded company valued at $1 billion or more.

The company is the 11th startup in 2022 to join the unicorn club after the likes of Mamaearth, Dealshare and Xpressbees.

The company recently acquired Mumbai-based artificial intelligence and machine learning-powered debt recovery platform Spocto Solutions for around $46-56 million.

With the acquisition, lenders on CredAvenue's platform will be able to access underwriting and collection services as well on the same platform.

The startup will be looking at adding capabilities in the credit SaaS (software as a service) space on both the retail and the enterprise side. It also sees an opportunity in growing the supply chain financing vertical, Kumar said.