The other investors who participated in this funding round for the debt collection SaaS platform included Westbridge and Accel.
Beams Fintech Fund announced that it has invested an undisclosed amount in a Series B round of $50 million in Credgenics. The other investors who participated in this funding round for the debt collection SaaS platform included Westbridge and Accel.
Tanglin, Tital Capital and DMI Finance also back Credgenics.
Digital debt collections are needed as lending moves into the instant mode. As lending volumes increase and instant loans with smaller ticket sizes grow, bringing down the cost of collections becomes a key priority for all stakeholders.
Digitisation is the only way to achieve this at scale. Credgenics is helping accelerate the pace of digitisation alongside addressing the gaps in the debt collection operations.
The company was founded in 2018 by Rishabh Goel, Anand Agarwal and Mayank Khera. To date, it has worked with over 100 customers in the BFSI segment, including banks, NBFCs and fintechs.
The platform has handled over 40 million retail loans to date and sends 60 million digital communications monthly. The company claimed that using its services has helped lenders to increase their resolution rates by 20 per cent and improve collections by 25 per cent. They also reduced collections costs by 40 per cent, bring down collections time by 30 per cent and improved legal efficiencies by 60 percent.
Anand Agrawal, co-founder and CPTO said, "We are thrilled to welcome Beams Fintech Fund as a new investor in our Series B round. This infusion of capital will serve as a catalyst for propelling our next phase of growth in the Southeast Asia region and powering new developments in the product. We are focused on ushering in a new era of debt collections through innovation and rapid adoption of digital technology. With our collections platform, we are committed to empowering individuals and businesses worldwide to simplify the management of their debt resolutions."
Sagar Agarvwal, managing partner and co-founder of Beams added that the investor had spent a lot of time in the banking Infrastructure and tech space to identify segments that are mission-critical for the BFSI sector. According to him, collections have been a long-standing challenge for financial institutions (FIs) globally, and a key concern area where they are willing to pay to improve efficiencies.
"As lending markets will become larger over the next decade, FIs will have to spend capital on resources and technology to effectively collect at the same pace. Rishabh, Mayank and Anand have productised the problem of collections for FIs and have used a first principles approach towards building the platform and providing a unique solution for FIs. We are delighted to partner with Credgenics and see a clear path to a huge revenue market for the company," he added.
Beams Fintech Fund’s ecosystem and network of LPs, which includes banks and NBFCs, will look to partner with Credgenics. The company will also strategise to cross-pollinate between its LPs and portfolio companies and facilitate Credgenics' access to its banking network and open doors to its group’s portfolio of over 250 start-ups for partnerships, collaboration, and potential acquisition opportunities.
Beams Fintech Fund's portfolio companies have raised more than $150 million at a combined valuation of over $1 billion in 2022. It also achieved its first close in the same year at $36 million corpus and made two investments.
As per a report by market intelligence platform Tracxn, the Indian fintech industry was the third highest funded in the world in the first half of 2023. The US and the UK are first and second, respectively.