New Delhi based Credgenics, which helps banks and NBFCs (non-banking financial companies) streamline their collection processes and reduce their non-performing assets, plans to strengthen its software as a service (SaaS) game.
On Tuesday, Analog Legalhub Tech Solutions operated Credgenics said it has secured $25 million (about Rs 186 crore) in a Series A round of funding led by Westbridge Capital and Tanglin Venture Partners along with returning investor Accel Partners.
Ashneer Grover, founder and CEO, BharatPe; Abhimanyu Munjal, MD and CEO, Hero Fincorp Group; Karthik Bhat, founder, Force Ventures; Kushal Nahata and Gautam Kumar, founders of Fareye also participated in this round.
Apart from powering the SaaS platform, the fresh capital will also be used to expand into new demographics, strengthen research and development (R&D), scale core operations across India, improve client services, and streamline the workflow, the company said in a statement.
“The funds of the new financing round will get utilised to find experienced professionals across all levels and build a world-class leadership team. We will further upgrade the core offerings, enhance product developments, and boost the R&D. The roadmap also includes International expansion beyond the Indian demographics. This includes a thorough R&D on the judiciary and fiscal measures prevalent there and then remedy their bad debts situation,” Rishabh Goel, co-founder and CEO, Credgenics, said.
The latest round, according to a statement, values the company at $100 million.
In 2020, Credgenics raised $3.5 million in a pre-Series A round led by Accel Partners, DMI Alternatives fund with participation from Titan Capital.
Founded in 2018 by IIT Delhi Alumni Rishabh Goel, Anand Agrawal, and advocate Mayank Khera, Credgenics leverages technology to reduce manpower used for legal and collection processes. The platform claims to collaborate with over 2200 legal counsels pan India for late stage delinquencies. Its service is being leveraged by 7 banks including ICICI Bank, IDFC First, Axis Bank, and Kotak Bank and 40 NBFCs including IIFL Finance, Loantap, DMI Finance, Clix Capital, Udaan, and Moneytap.
Credgenics manages over Rs 1580 crores of debt on its financial platform. According to the company, the SaaS-based collections and legal automation platform improves resolution rates by over 20% with an average 20-days reduction in the resolution time.
“We strongly believe that Credgenics platform will help financial services organization improve their collections processes and the financial burden of rising Non-performing Assets. We admire the vision and leadership skills of Rishabh, Anand, and Mayank in pioneering the use of technology to improve the financial services collections processes. In a short period of time, they have been able to attract the most prestigious banks and NBFCs as their customers,”
Rishit Desai, principal, West Bridge, said.
Additionally, its holding company Analog Legalhub Tech Solutions also owns a technology-based legal research solutions platform LawWagon.