Fintech Startup Credgenics Aims for Fiscal Success in 2024

CEO and co-founder of Accel-backed fintech startup Credgenics, a Saas-based platform for debt collection and resolution, Rishabh Goel, told FE in an interview that the company is expected to earn a profit by the end of this fiscal year.

We were able to record a profit of about Rs 50–60 lakh in the first year of business, but we had to make significant investments in R&D, technology, HR, and products. We expect to reach net profitability by the end of the year after breaking even on a monthly basis earlier in the year, according to Goel.

The business also intends to more than quadruple its topline in FY24, from over Rs 100 crore in FY23 to Rs 200–250 crore in FY24. This is contingent upon the uptake of its debt resolution solutions, which include mobile apps for field collections, litigation management, digital collections, and more.

More than a hundred financial institutions, including ICICI Bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance, are among Credgenics’ clients in India and Indonesia. Currently, the organisation is in charge of 60 million retail loan accounts, with a $5 billion monthly loan book value.

Roughly 80% of its customers are banks and NBFCs combined, with fintechs making up the remaining 20%. Regarding the penetration rate, Goel said, “I think there are some areas like Chennai and Jaipur where there is a huge saturation of NBFCs, but we are not there yet in many of them.”

In the later quarters of this fiscal year, when retail loan activity is stronger due to holiday spending, Credgenics anticipates a substantial uptake of its debt resolution products.

“I believe that compared to the prior two quarters, when the demand for credit from both consumers and MSME’s has increased, the pace of lending has slowed down in the first two quarters. This harvesting season is when a lot of agri-based funding occurs, he noted.

To date, the company has raised $75 million from investors, including Accel Partners, Tanglin Venture Partners, and Westbridge Capital. These investors spearheaded a recent $50 million series B investment deal, valuing the company at $340 million.