Credgenics, a prominent SaaS-based debt collection and resolution platform, is poised to achieve a significant milestone by turning profitable at the close of the current financial year. The fintech startup, backed by Accel, has strategically positioned itself in the market, offering innovative solutions for debt resolution that have garnered attention from major players in the financial industry.
In a recent interaction, Rishabh Goel, co-founder and CEO of Credgenics, disclosed the company’s ambitious plans. While Credgenics reported a profit of around Rs 50-60 lakh in its inaugural year, subsequent investments in crucial areas like human resources, technology, product development, and research and development were made. Goel highlighted that the company achieved breakeven at a monthly level earlier this year, and the team is diligently working towards achieving net profitability by the end of the financial year.
Financial Projections for FY24
Credgenics has set its sights on aggressive growth, aiming to more than double its topline in the fiscal year 2024, with revenue projections ranging between Rs 200-250 crore. This ambitious target reflects the company’s confidence in the adoption of its cutting-edge debt resolution solutions. These solutions include digital collections, litigation management, a field collections mobile app, and more, addressing the evolving needs of the financial sector.
With over 100 customers spanning India and Indonesia, Credgenics has successfully attracted major financial institutions to its platform. Notable clients include ICICI Bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance. The platform currently manages a whopping 60 million retail loan accounts, boasting a monthly loan book value of $5 billion.
Within its diverse customer base, Credgenics has observed that banks and NBFCs constitute approximately 80%, with fintech companies making up the remaining 20%. The company’s reach extends across various regions, with notable penetration in cities like Chennai and Jaipur, where NBFCs have a significant presence.
Rishabh Goel expressed optimism about witnessing a robust uptake of Credgenics’ debt resolution offerings in the later quarters of the financial year. Traditionally, retail lending activity tends to peak during this period due to increased spending during the festive season. Goel emphasized the company’s readiness to capitalize on heightened consumer and MSME credit demand in the coming quarters.
Funding Success and Valuation
Credgenics’ journey has been buoyed by successful funding rounds, with a total of $75 million raised from esteemed investors such as Westbridge Capital, Tanglin Venture Partners, and Accel Partners. The company recently secured $50 million in a series B funding round led by these investors, propelling its valuation to an impressive $340 million.
Credgenics’ pursuit of profitability in the fiscal year 2024 reflects its commitment to sustainable growth and innovation in the fintech space. With a strong client base, a comprehensive suite of debt resolution solutions, and strategic financial backing, the company is well-positioned to make a lasting impact on the evolving landscape of debt management and resolution. As Credgenics navigates the path to profitability, it stands as a testament to the potential and resilience of fintech startups in India.