Fintch major CRED is set to acquire a stake of 100% in Hyderabad-based SaaS startup CreditVidya for an undisclosed amount. The transaction, which is a mix of both cash and stock, is currently subject to approvals before it closes, and marks the latest investment by CRED as it looks to further expand its lending vertical, looking to make money.
“Expanding access to credit is a key driver for financial progress. CreditVidya’s patented tech stack uncovers signals of trust among under-served cohorts. We look forward to supporting them in powering an inclusive credit ecosystem,” Kunal Shah, CRED founder and CEO, said in a statement.
As part of the deal, both CreditVidya and CRED will continue to operate independently, while the team members at CreditVidya will get all the benefits that are currently extended to Cred team members, including its employee stock-option program.
“We’ve invested in building products that bring financial services to credit under-served 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 brand and scale distribution, we are excited to learn from the CRED team,” Abhishek Agarwal, co-founder and CEO, CreditVidya, said.
With the acquisition, the Tiger Global-backed fintech unicorn will have access to a wider customer base and ecosystem, while simultaneously strengthening its lending arm. It also comes after CRED had expressed its plans to acquire a minority stake in its Mumbai-based lending partner LiquiLoans, its earlier investment in CredAvenue and its acquisition of HapPay.
CreditVidya, which is known to offer lending-as-a-service, is known to help businesses in embedding customised credit products through easy-to-integrate AI-powered APIs. Additionally, it helps lenders make critical decisions based on credit scores. It has come a long way since its inception ten years ago – today, it is backed by the likes of Kalaari Capital and Matrix Partners and was last valued at about $30 million post-money. It has raised $10 million in financing rounds so far.
“In the last few years, we have leveraged the power of technology to expand access to credit. As we step forward into a new era of growth with CRED, I would like to thank our team and partners for their continued faith in our mission,” said Rajiv Raj, co-founder and Director, CreditVidya. The startup claims to have helped over 25 million individuals with its technology to date.