Fintech

Credgenics, Accel-Backed Debt Resolution Platform, Targets Profitability by FY24 End

• ByStartupStory     |    December 4, 2023

Credgenics, a SaaS-based debt collection and resolution platform backed by Accel, is set to achieve profitability by the end of the current financial year, according to CEO Rishabh Goel. The company reported an initial profit of approximately INR 50-60 lakh in its first year but subsequently directed investments into areas such as HR, technology, product development, and research and development. Having reached a monthly break-even point earlier this year, Credgenics aims for net profitability by the fiscal year-end.

Goel stated, “By the end of this year, we should be at net profitability.” The company is strategically positioned to capitalize on the adoption of its debt resolution solutions, including digital collections, litigation management, a field collections mobile app, and more.

Credgenics plans to more than double its topline in FY24, targeting INR 200-250 crore, up from over INR 100 crore in FY23. The company boasts a customer base of over 100, including prominent financial institutions such as ICICI Bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance. Currently managing 60 million retail loan accounts, Credgenics handles a monthly loan book value of $5 billion.

Goel highlighted the distribution within their customer base, stating, “Banks and NBFCs together form about 80%, while fintechs hold the rest.” He anticipates increased traction for Credgenics’ debt resolution offerings in the later quarters of this financial year, coinciding with higher retail lending activity during the festive season.

“In the first two quarters, the pace of lending is slower in comparison to the last two quarters when both consumer and MSME credit demand is higher,” said Goel. The company has raised $75 million to date from investors such as Westbridge Capital, Tanglin Venture Partners, and Accel Partners. A recent series B funding round raised $50 million, valuing Credgenics at $340 million.

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