Financial obligation collection platform Credgenics’ revenue triples to Rs 25 crore in FY25; profits up 40%
Credgenics saw a significant surge in net profit, reaching Rs 25 crore in FY25, driven by increased demand for efficient debt recovery services. Total income reached Rs 220 crore as lenders sought to handle tension on unsecured loans. CEO Rishabh Goel stated the business has lowered the share of unsecured individual loan accounts in its collections portfolio.
Financial obligation collection platform Credgenics reported an almost three-fold rise in net earnings to Rs 25 crore for the financial year 2024-25, thanks to lending institutions seeking more efficient systems for healing in the middle of tension on unsecured loans and rising default rates. The business’s overall revenue rose to Rs 220 crore in FY25, up from Rs 155.6 crore the previous year. However, the Noida-based company did not divulge its overall expenditures for the fiscal year. In an interaction with ET, cofounder and CEO Rishabh Goel said Credgenics has decreased the share of unsecured individual loan accounts in its collections portfolio in reaction to regulative tightening up in the section. The company is aiming to reduce its dependence on such volatile loaning products and focus on stable growth.
Founded in 2018, the business offers a software-as-a-service (SaaS) platform that helps loan providers manage loan collection. The platform provides tools to monitor the collection and automate procedure, consisting of customer communication, field operations, legal workflows, and repayment facilitation. Goel kept in mind that public sector banks (PSBs) are significantly exploring technology-led options for collection, with some providing ask for proposals (RFPs) to onboard fintech partners. Credgenics is currently working with a number of PSBs to improve their collection procedures, opening up a new earnings stream for the company. Currently, the platform deals with around 160 clients, including personal banks, NBFCs, fintechs, and possession restoration companies. Credgenics’ partners include HDFC Bank, ICICI Bank, Dependence Asset Reconstruction, IIFL Financing, and Aye Finance.
Across the financial services worth chain, people were not able to scale their loan book much faster despite the fact that they had access to capital. The reason was they were not able to collect. Hence, we began to use a lot of innovation. The CEO added that while the business is concentrated on expanding its PSB customer base, it is likewise banking on development within existing accounts and international markets. Credgenics just recently went into the Middle East and is doubling down on its presence in the region. In 2023, Credgenics raised $50 million from investors, including Westbridge Capital, Accel, Tanglin Ventures, and Beams Fintech Fund, valuing the business at $340 million.
The company takes on rivals such as Yubi-owned SpoctoX, Perfios-owned CreditNirvana, and Rezolv, which use data-driven designs to evaluate debtor behaviour, pre-empt defaults by keeping an eye on account activity, and implement targeted healing techniques.
