Fintech Unicorn CRED acquires this Lending SaaS startup
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In the latest deal in town, Tiger Global-backed CRED is acquiring 2013 incumbent CreditVidya, a SaaS startup that enables financial institutions and NBFCs to make critical decisions about thin-file customers by drawing on APIs.
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With this, CreditVidya joins HipBar, Parfait Finance and Investment and Happay as the list of companies under CRED. The company disclosed that the transaction has been a mixture of cash and stock, and that the closing of the acquisition of the loan as a service start is subject to necessary approvals.
Analytical Insights, a leading media name in big data, AI, analytics and robotics, has named CreditVidya as one of the top 10 fintech companies to watch in May 2022.
The firm, in an official release, shared statements from its founders about the acquisition.
“Expanding access to credit is a key driver of economic progress. CreditVidya’s patented technology stack is uncovering signals of trust among underserved cohorts. We look forward to supporting them in driving an inclusive credit ecosystem,” said Kunal Shah, Founder, CRED.
Abhishek Agarwal, Co-Founder and CEO, CRED added “We have invested in building category-defining products that provide financial services to credit-underserved Indians through our partners, transforming how risk is assessed and trust measured to drive financial inclusion. In our next phase of our growth, as we build a brand and scale distribution, we are excited to learn from the CRED team.”
But despite the legal buyout, CRED and CreditVidya will continue to operate independently, with the latter’s 200+ employees receiving full benefits as CRED’s team members, including the ESOP program.
According to data maintained by Tracxn, CreditVidya achieved Series B status with its latest funding, which took place in January 2019 for $3 million. The investors include Bharat Fund, Matrix Partners India and Kalaari Capital.
Speaking about the acquisition, Rajiv Raj, Co-Founder and Director, CreditVidya shared “Over the past few years, we have harnessed the power of technology to expand access to credit. As we move forward into a new era of growth with CRED, I would like to thank our team and partners for their continued belief in our mission.”
