Debt Marketplace CredAvenue Acquires Majority Stake In Spocto
CredAvenue, a debt marketplace, has announced the acquisition of a majority stake in artificial intelligence-powered debt recovery platform Spocto Solutions for Rs 400 crore. With this deal, CredAvenue has acquired a 75% stake in the five-year-old Spocto.
As per CredAvenue, post the transaction, it will now be the first global debt marketplace that caters to every stage of the enterprise lending lifecycle. The debt marketplace added that expanding its product offerings to include a digital collection solution for lenders will improve its value proposition to the banking and financial sector.
CredAvenue‘s Acquisition Of Spocto
Spocto is a consumer analytics platform for Banks and Financial Institutions that helps in debt collections recovery. The fintech platform leverages Artificial Intelligence (AI) & Machine Learning (ML) to enhance customer reach, engagement, and interaction, hence disrupting the debt collections industry with intelligence.
Speaking about the development, Gaurav Kumar, CredAvenue’s founder and chief executive, said,
“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.”
Gaurav Kumar added that the acquisition deal would shrink the resources and time required for collection while improving the recovery rate and improving the overall asset quality of clients.
Also, the acquisition deal will help in risk mitigation and fraud by tracking absconding borrowers through any digital footprint to any corner of the world. It will help improve collection efficiencies for clients at low costs.
Commenting on the development, Sumeet Srivastava, Co-founder and chief executive of Spocto, said,
“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.”
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