CRED to acquire lending tech startup CreditVidya
- ByStartupStory | November 29, 2022
The latest in a string of investments made by the fintech company with Bengaluru headquarters, CRED, is buying CreditVidya, a SaaS startup that aids businesses in underwriting first-time borrowers.
The companies stated the deal contains both cash and shares but did not disclose the parameters. The Hyderabad-based, 10-year-old CreditVidya, which is founded by Navroz Udwadia, Kalaari Capital, and Matrix Partners, had previously raised $10 million and was last valued at roughly $30 million post-money.
According to a statement from CRED, the two businesses will continue to run separately, and the CreditVidya personnel will also be eligible for the employee stock programme and other perks.
“Increasing loan availability is a major factor in driving economic development. The unique technology stack of CreditVidya identifies trust signals among underserved demographics. As the driving force behind an inclusive credit ecosystem, we look forward to helping them, said CRED founder and CEO Kunal Shah.
CreditVidya provides SDKs to businesses so they can incorporate them into their Android apps and gather user consent-driven data. The startup subsequently processes the information and assists lenders in determining the applicants’ credit risk, many of whom have little to no credit history. According to the startup’s website, more than 25 million people have benefited from CreditVidya’s technology.
In order to promote financial inclusion, we have invested in developing market-defining products that, through our partners, provide financial services to Indians who are underserved in this area. Abhishek Agarwal, co-founder and CEO of CreditVidya, stated in a statement, “We are excited to learn from the CRED team as we build brand and scale distribution in our next phase of growth.
The most recent investment CRED has made during the past 12 months is in CreditVidya. The startup, which gives users access to D2C brands and loans as well as the ability to manage and pay their credit card and numerous other bills on time, backed peer-to-peer lender Liquiloans two months ago. It also made investments in lender CredAvenue earlier this year and expense management platform HapPay in December.
CRED, which is valued at $6.4 billion and is backed by Tiger Global, Sequoia India, Alpha Wave Ventures, and Dragoneer, engaged with Amazon-backed Smallcase earlier this year, first to explore investment and then for a majority acquisition, as previously reported. The offer was rejected by Smallcase’s board, which prevented the negotiations from progressing into a deal, according to two people with knowledge of the situation.
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