Debt marketplace platform CredAvenue on Monday announced it has acquired a 75.1% stake in Spocto, a CollecTech startup that provides digital collection solutions. 

The deal size is quoted between Rs 350 crore to Rs 400 crore.

With the acquisition in process, CredAvenue plans to further improve its offerings to the banking and financial sector by leveraging Spocto’s AI based solutions. The Mumbai based startup will help in risk mitigation and fraud by tracking defaulters with help of solid algorithms.

Gaurav Kumar, Founder and CEO, CredAvenue, said that the company’s relentless focus on enhancing their overall service proposition and positioning CredAvenue as an all-encompassing debt marketplace for lenders  and borrowers is a key driver of their  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,” he added.

At the beginning of 2022, CredAvenue started laying the foundation to their expansion plans by appointing a new Chief Human Resource Officer on January 24th and then Chief Product Officer on February 7th.  

Post the integration, CredAvenue’s retail offerings will enhance the asset quality and profitability of the lending book. Spocto employees will continue to service all their existing customers with this arrangement. 

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.”