CredAvenue, a service that facilitates transactions between lenders and institutional borrowers in India, recently raised USD 90 million in Series A funding. Sequoia Capital India led the round of funding, with participation from CRED of India, Lightspeed India Partners III, US-based Lightstone Global Fund and TVS Shriram Growth Fund III of India. The new funding values CredAvenue at USD 410 million. Meanwhile, India-based Vivriti Capital Private Limited (VCPL) retains 58.5 percent of the firm’s shares.
CredAvenue is headquartered in the city of Chennai and serves approximately 150 lenders and 800 borrowers. It describes its debt platform as “a unified digital platform for discovery, trading, execution and fulfilment of all debt solutions,” such as working capital loans, corporate bonds, co-lending, securitization and trade financing. Gaurav Kumar, CEO of CredAvenue, reported, “The size of debt facilitated on our marketplace ranges from Rs 50 crore to Rs 3000-4000 crore [USD 1 to USD 54].” The sizes of transactions on the marketplace range from INR 500 million (USD 6.68 million) to INR 40 billion (USD 535 million).
The goal of VCPL is to build “the largest and most valuable platform for financial services.” As of March 2021, the firm reports total assets of INR 22 billion (USD 296 million). Creation Investments, a US-based alternative investment manager, owns a majority stake in VCPL. Founded in 2007, Creation Investments manages funds and direct investments “for individual, family office and institutional investors… [to] provide access to capital to the unbanked and underbanked to engage in small-business activity.” In addition to the US, the firm has offices in India and Mexico. It lists 19 investees as of 2021.
By Zachary DeLuca, Research Associate
Sources and Additional Resources
CredAvenue press release
https://www.credavenue.com/credavenue-raises-90-millionpress-release
CredAvenue homepage
https://www.credavenue.com/
VCPL homepage
https://www.vivriticapital.com/
Creation Investments homepage
https://creationinvestments.com/
CRED homepage
https://cred.club/
Economic Times article
https://economictimes.indiatimes.com/tech/funding/credavenue-raises-90-million-in-indias-biggest-series-a-funding-round/articleshow/86610039.cms
Lightspeed India Partners III homepage
https://lsvp.com/
Lightstone Global Fund homepage
https://www.lightstonevc.com/
TVS Shriram Growth Fund III homepage
https://www.tvscapital.in/
Previous MicroCapital article on Creation Investments
https://www.microcapital.org/microcapital-brief-creation-investments-leads-30m-debt-equity-funding-round-for-reshamandi-b2b-app-for-silk-farms-manufacturers-retailers-in-india/
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