Online debt

CredAvenue, an online debt settlement platform, will double its workforce by March 2022

CredAvenue, Vivriti Capital’s online debt settlement platform, plans to double its workforce to 700 by March 2022 to complete its accelerated growth plans in which it expects to end the year with a figure of business of Rs 200 crore.

Currently, the Chennai-based company employs 350 people in the areas of technology, sales, marketing and strategy, among others, in its offices in Chennai, Bengaluru, Mumbai and New Delhi.

“We plan to double our workforce to 700 by the end of fiscal 22, from 350 now. It was 250 last year. Of the total employees, up to 450 will be in the tech sector and we have already hired 100, ”Gaurav Kumar, founder and managing director of CredAvenue, told PTI on Friday.

For the current year, CredAvenue has set a target of settling the debt around Rs 52,000 crore, and has already arranged Rs 14,000 crore so far, said Kumar, who is also a co-founder. by Vivriti Capital.

He added that since its inception three years ago, the company has arranged 62,000 crore of debt for more than 1,600 customers, including JSW Steel and Shriram Transport.

The company has three sources of revenue: its software-as-a-service (SaaS) offering that recovers 0.1 of the debt; platform rents based on the amount of debt disbursed, the pricing of which is based on the credit rating and with an average of around 45 basis points of the loan disbursed; and third, the borrower’s take-up rate which ranges from 25 to 100 basis points of the loan amount but averages around 50 basis points, he said.

Considering the faster growth rate so far, “we have set a target (revenue) of Rs 200 crore by March, which is four times more than Rs 47 crore in FY 21” , did he declare.

Without disclosing the actual number, he said the business was profitable.

Up to 80% of its volume comes from securitization and the rest from the offer and co-loan.

The company has two outside investors, Creation and Lightrock, who together hold 74%, and plans to raise an additional Rs 820 crore, diluting another 20-22%, Kumar said.

Kumar was also a founding member of the former IFMR Capital, which is now Northern Arc Capital, which also deals with debt settlement.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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