The firm aims to develop all-inclusive debt-platform with transactions, underwriting (UW) services and debt collection
Debt marketplace startup, CredAvenue has announced its first acquisition, which comes four months after the company raised one of the largest Series A equity rounds in the startup ecosystem valuing at $90 million.
The startup has secured a 75.1% stake in Spocto Solutions, a Mumbai-based artificial intelligence (AI) and machine learning (ML) fueled debt recovery platform, for offering a new feature to its clientele consisting of banks and institutions in addition to a marketplace.
Speaking on the recent takeover, CredAvenue CEO and Founder, Gaurav Kumar stated that the acquisition is proposed at a valuation range of $46 million to $56 million.
Notably, the debt platform provides an infrastructure for enterprises as well as lenders to explore and implement debt transactions. It also ensures banks and NBFCs with underwriting services, enabling loans that are displayed on CredAvenue.
By leveraging this acquisition, both the banks and NBFCs will now be able to conduct debt collection as well on the same platform.
Mr. Kumar quoted that Spocto Solutions is India’s largest digital collection platform, which currently serves top five banks in the Middle East and will integrate the deep expertise of founders in collection and technology, to serve its client banks with the much-awaited feature.
Founded back in 2016 by Puja Srivastava and Sumeet Srivastava, who formerly served as General Electric Executives, Spocto has 37 clients accounting for $50 billion worth assets under management (AUM).
Moreover, CredAvenue will pursue the remaining 25% stake in the AI platform over next five years and plans to infuse an additional $80-$120 million in Spocto in near future.
Speculations have it that the startup is also working towards another acquisition in the field of credit SaaS (Software as a Service) on the side.