New Delhi-based Analog Legalhub Tech Solutions, which owns and operates fintech platform Credgenics, has raised an undisclosed amount in a seed funding round led by Titan Capital, an investment firm owned by Snapdeal founders Kunal Bahl and Rohit Bansal.
Rajesh Razdan, founder of early stage investment consultation and management firm V2Now; Ajay Garg, managing director of investment bank Equirus Capital; and Mitesh Damania and Sunder Nookala, co-founders of employee engagement firm Kwench, also participated in the round, as per a statement.
The company will scale operations in all metro cities, strengthen product development and acquire new clients with the fresh funds, it said.
Founded in 2018, the platform aids banks, non-banking finance companies (NBFCs) and other stakeholders with resolution of non-performing assets (NPAs). It leverages technology to reduce manpower used for legal and collection processes. Credgenics claims to have over 2,200 lawyers and collection partners on its platform, and counts Kotak Mahindra Bank, Drip Capital, Shubh Loans, LoanTap and CashKumar among its clients.
The Indian informal lending market is pegged to be worth $600 billion, while digital lending is set to cross $100 billion by 2023, the company said. Besides, the banking sector is riddled with the issue of bad loans and high case pendency before forums such as dedicated insolvency tribunals and debt recovery tribunals, which provide Credgenics an opportunity to service financial institutions.
Its co-founders include IIT Delhi alumni Rishabh Goel, Anand Agrawal and Mayank Khera. While Goel has worked with financial institutions such as BlackRock and Deutsche Bank, Agarwal has been a part of startups such as 1mg and UrbanClap. Khera, on the other hand, is a practicing advocate based out of Delhi.
Additionally, its holding company Analog Legalhub Tech Solutions also owns a technology-based legal research solutions platform LawWagon.
“The loan defaults are also increasing at an exponential pace and we have observed that the problem in India is not on lending but on the collections side, since it is easier to give the money than take it back. We are focussing on improving the collections efficiency leveraging technology and already in discussions with big Banks to deploy our platform to streamline their collection processes and reduce their NPAs,” co-founder Goel, also the CEO of Credgenics, said.
“Out of several use cases of tech enabling the legal procedural workload, the handling of NPA for the BFSI segment using analytics and intelligent process automation is truly innovative, commendable and am sure it will save a huge workload and costs for the BFSI sector in particular,” investor Razdan said.
Titan Capital has so far invested in over 70 startups, such as content platform Pepper Content, hygiene brand Azah, craft beer startup Bira, bicycle brand Frog Cycles, online gaming platform Rein Games, and fintech firms such as OfBusiness and Khatabook. Its portfolio startups have cumulatively raised $4 billion from over 100 institutional investors, sovereign wealth funds and family offices.
In the broader fintech space, Gramcover Insurance Brokers, an insurer with operations in rural areas, raised an undisclosed amount in a bridge funding round from Omnivore, EMVC, Flourish and Omidyar Network India last week.
In May, HomeCapital raised an undisclosed amount in a bridge funding round led by Varanium NexGen Fund with Venture Catalysts, Singapore Angel Network, Venture Gurukool, JITO Incubation, Innovation Foundation and angel investor Shalin Shah.
In the same month, Khatabook raised $60 million in a Series B funding round led by Facebook co-founder Eduardo Saverin’s B Capital Group.