CredAvenue Acquires Majority Stake in Spocto Solutions

CredAvenue, India’s largest debt marketplace, has acquired a 75.1% stake in Spocto, the global leader in digital collections. CredAvenue will now be the first global debt marketplace that caters to every stage of the enterprise lending lifecycle.

Expanding its product offering to include a digital collection solution for lenders on the CredAvenue platform will further improve its value proposition to the banking and financial sector.

Spocto will help in risk mitigation and fraud by tracking absconding borrowers through any digital footprint to any corner of the world. Spocto offers a complete package of collections based on solid algorithms. This will improve collection efficiency at a fraction of the costs incurred on offline platforms. Integrating this with CredAvenue’s retail offering will enhance the asset quality and profitability of the lending book. Spocto employees will continue to service all their existing customers with this arrangement.

Gaurav Kumar, Founder and CEO, CredAvenue, said, “Our relentless focus on enhancing our overall service proposition and positioning CredAvenue as an all-encompassing debt marketplace for lenders and borrowers is a key driver of our growth. Adding digital collection capabilities will significantly add value to lending partners on the platform. This deal is a forward integration that completes the product suites for the entire lifecycle. It will shrink the resources and time required for collection while improving the recovery rate. From a broader perspective, it will improve the overall asset quality of our Bank and NBFC partners. This acquisition will propel us into the global market by gaining access to Spocto’s global clientele and network. We will continue to disrupt everything debt with the goal of having a worldwide impact.”

Sumeet Srivastava, Co-founder and CEO of Spocto Solutions Pvt Ltd., said, “Spocto is a disruptive frontrunner in impacting the debt marketplace in India through digitised collection since the last five years. With a strong customer base of lenders and banks in India and abroad, this seamless integration towards a larger operational transformation will help Spocto transcend to the next level of growth. We are excited about entering a new phase of growth with CredAvenue. This deal is based on a strong synergy between CredAvenue and Spocto in offering data-driven, tech-first services to the lender and borrower communities and strengthening the debt ecosystem. Like CredAvenue, we have created this category. We are poised to leverage the depth and width of the lender network present on the CredAvenue platform.”