Indian fintech startup Credgenics has secured $50 million in a funding round led by existing investors Accel and Westbridge Capital. The investment has tripled Credgenics’ valuation to $340 million and will be used to expand its debt collection service into Southeast Asian markets, including Vietnam and Indonesia.
Credgenics provides online services to banks and financial institutions, helping them collect on debts. Its platform enables the management of customer data, automatic reminders, borrower contact through phone calls, online payment processing, and legal procedures for defaults. The company primarily handles retail loans and debt from smaller enterprises.
The demand for efficient debt collection services is increasing as credit growth rises in countries like India. In June alone, personal loans in India grew by 21% compared to the previous year. Credgenics addresses this challenge by leveraging artificial intelligence to predict delinquencies and identify areas where intervention would be most useful.
Anand Agrawal, Credgenics’ Chief Product and Technology Officer, stated, We can’t expect call center operators to be able to keep track and collect all these new loans being created. By implementing AI, Credgenics aims to enhance communication with borrowers while streamlining the collection process.
In addition to its debt collection services, Credgenics is exploring product use cases for the collection of insurance premiums and utility bill payments. The company seeks to expand and diversify its offerings as it continues to grow.
By expanding into Southeast Asia, Credgenics aims to tap into markets that share similarities with India’s credit market. The company’s CEO, Rishabh Goel, expressed his intention to leverage the funding to enter Vietnam and Indonesia.
Credgenics’ latest funding round marks a significant milestone, with the company’s valuation more than tripling since its previous financing round in 2021. The additional capital will enable Credgenics to fuel its expansion plans and further establish its presence in the Southeast Asian debt collection market.
