CRED is acquiring CreditVidya, a SaaS startup that helps businesses secure new borrowers, in the latest in a series of investments from the Bengaluru-based fintech as it broadens its infrastructure and offerings.
The companies did not disclose the terms of the deal, but said it involves both cash and stock. 10-year-old CreditVidya — headquartered in Hyderabad and backed by Navroz Udwadia, Kalaari Capital and Matrix Partners — had raised $10 million in previous rounds of funding and was last valued at around $30 million post-money.
The two firms will continue to operate independently and CRED will expand its employee equity program and other benefits to CreditVidya’s workforce, CRED said in a statement.
“Expanding access to credit is an important driver of financial progress. CreditVidya’s proprietary tech stack reveals signals of confidence among underserved cohorts. We look forward to supporting them in driving an inclusive credit ecosystem,” CRED Founder and CEO Kunal Shah said in a statement.
CreditVidya provides SDKs to companies that can integrate them into their Android apps and collect consent-based data from users. The startup then processes the data and helps lenders assess the credit risk of the applicants, many of whom have little to no credit history. CreditVidya’s technology has served more than 25 million people, the startup says on its website.
“We have invested in building category-defining products that provide financial services to underserved Indians through our partners, transforming the way risk is assessed and confidence 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,” said Abhishek Agarwal, co-founder and CEO of CreditVidya, in a statement.
CreditVidya is the latest in a series of investments CRED has made over the past year. The startup, which gives users the ability to manage and pay their credit card and numerous other bills on time, as well as access to D2C brands and loans, backed peer-to-peer lender Liquiloans two months ago, invested in lender CredAvenue annual and expense management platform HapPay in December.
CRED, backed by Tiger Global, Sequoia India, Alpha Wave Ventures and Dragoneer and valued at $6.4 billion, was also involved with Amazon-backed Smallcase earlier this year, initially to explore an investment and later for a majority acquisition , ukbusinessupdates.com previously reported. The talks failed to result in a deal after Smallcase’s board rejected the offer, according to two people familiar with the matter.