Debt marketplace CredAvenue on Monday said it has acquired a 75.1% stake in digital collections company Spocto to expand its product offerings.
The acquisition will help CredAvenue include digital collection solutions for lenders and help mitigate risk and curb fraud on its platform. It will also help improve collection efficiency, the company said in a statement.
“Adding digital collection capabilities will significantly add value to lending partners on the platform. This deal is a forward integration that completes the product suites for the entire lifecycle. It will shrink the resources and time required for collection while improving the recovery rate. From a broader perspective, it will improve the overall asset quality of our bank and NBFC partners,” said Gaurav Kumar, founder and chief executive of CredAvenue.
After the integration, Spocto will continue to service all its existing clients. It has a total of 37 global clients and a workforce of 250, with a presence in the Middle East.
At present, CredAvenue has a portfolio of five credit platforms: term lending and enterprise working capital solutions provider CredLoan; co-lending platform with banks and non-banking financial companies (NBFCs) CredCoLend; bond issuance platform Plutus; trade financing platform CredSCF; and portfolio buyout solution for financial institutions CredPool.
The company claims to have facilitated debt transactions to the tune of Rs 90,000 crore for over 750 lenders through its platform.Source: Economic Times