2 days ago
Debt collection platform Credgenics' profit triples to Rs 25 crore in FY25; revenue up 40%
Debt collection platform Credgenics reported a nearly three-fold rise in net profit to Rs 25 crore for the financial year 2024-25, thanks to lenders seeking more efficient mechanisms for recovery amid stress on unsecured loans and rising default company's total revenue rose to Rs 220 crore in FY25, up from Rs 155.6 crore the previous year. However, the Noida-based company did not disclose its overall expenses for the fiscal year.
In an interaction with ET, cofounder and CEO Rishabh Goel said Credgenics has reduced the share of unsecured personal loan accounts in its collections portfolio in response to regulatory tightening in the segment. The company is aiming to lower its dependence on such volatile lending products and focus on stable growth.'Overall, I think we might have anticipated even higher growth than the current numbers... we have to be satisfied with the current numbers because of the overall ecosystem of personal loans, and others,' Goel told ET.
Founded in 2018, the company offers a software-as-a-service (SaaS) platform that helps lenders manage loan collection. The platform provides tools to automate and monitor the collection process, including borrower communication, field operations, legal workflows, and repayment facilitation.
Goel noted that public sector banks (PSBs) are increasingly exploring technology-led solutions for collection, with some issuing requests for proposals (RFPs) to onboard fintech partners. Credgenics is currently working with several PSBs to enhance their collection processes, opening up a new revenue stream for the company.
Currently, the platform works with around 160 clients, including private banks, NBFCs, fintechs, and asset reconstruction companies. Credgenics' partners include HDFC Bank, ICICI Bank, Reliance Asset Reconstruction, IIFL Finance, and Aye Finance.'Across the financial services value chain, people were not able to scale their loan book faster even though they had access to capital. The reason was they were not able to collect. Hence, we started to make use of a lot of technology,' said CEO added that while the company is focused on expanding its PSB client base, it is also betting on growth within existing accounts and international markets. Credgenics recently entered 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 company at $340 million.
The company competes with rivals such as Yubi-owned SpoctoX, Perfios-owned CreditNirvana, and Rezolv, which use data-driven models to analyse borrower behaviour, pre-empt defaults by monitoring account activity, and implement targeted recovery strategies.
