Michael Zetser Entrepreneur Discusses Credgenics Securing $50 Million in Funding
Aug 23, 2023
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Michael Zetser, an expert in the fintech sector, explains that Credgenics securing $50 million in series B funding could have a significant impact on the banking sector in the future. Recently, Credgenics, a debt recovery and legal automation platform, secured funding from major investors like Accel and WestBridge in a Series B funding round. Additionally, strategic investors such as Beams Fintech Fund and Tanglin Ventures participated in making notable contributions.
The company specializes in debt recovery automation and has goals to streamline and improve the debt recovery process with an innovative platform. Thanks to this latest round of funding, Credgenics has enough resources to enhance its offerings, establish itself in the industry, and expand operations.
Funding By Accel and Westbridge Capital Shows Credgenics’ Potential
Michael Zetser explains that participation by renowned investors such as Accel and Westbridge Capital shows the platform’s potential and recognition. Many industry leaders consider it a suitable solution for addressing various challenges in the field of debt recovery. Although it only recently secured its massive funding, Credgenics has already outlined specific plans as to how it’ll utilize these newly acquired funds.
They plan to allocate funds towards different strategic initiatives. This includes further enhancements and advancements to its range of products. The funds will also support Credgenics' plans for global expansion, which will allow the company to enter international markets.
Part of the company’s growth strategy involves increasing its presence in broader segments such as banking, financial services, and insurance. fintech entrepreneur Michael Zetser predicts that once Credgenics enters these domains, it will use its technology and expertise to address a wide array of businesses and financial institutions. It’s likely that this latest round of funding will enhance the company’s growth trajectory and improve its capabilities for transforming debt recovery and legal automation.
Credgenics Has Handled Major Loan Books So Far
The company, which launched in 2019, offers services like an AI-based payments platform, a field collection application, and litigation management. Its clientele includes more than 100 private banks, fintech firms, NBFCs, and asset reconstruction companies.
With its clientele so far, the company has successfully handled an overall loan book worth $60 billion over the course of fiscal year 2023. That’s a sharp increase from the fiscal year 2022 when it handled a loan book worth $47 billion. After this latest round of funding, the total funds raised are a notable sum of $78 million, and the company is now valued at $340 million.
Credgenics Offers an Array of Management Tools
Since the company started in 2019, it has developed a collection management tool for various financial institutions. Michael Zetser explains that the innovation allows fintech companies, banks, and others to streamline the loan recovery process. From litigations and billings to payments and collections, it handles it all. Moreover, it offers an effective communication channel with its borrowers using analysis. This results in higher recovery rates and lower costs associated with collection.
He elaborates that before the deployment of such a solution, loan collection mostly required manual efforts. Although banks and non-bank financial companies have tried implementing various systems or software for loan recovery and collection, they work separately. So even then, there’s still a lot of manual work involved in putting together the pieces from different systems. What Credgenics does is it implements a singular solution for a more efficient workflow.
Through its innovative solution, the platform built eight modules that lenders can select from based on their needs. Then, they can integrate the module into their system, with each module being developed to include different stages covered in the debt resolution journey. This starts from the pre-due stage to officially writing off an account.
Starting Out as a CRM Tool To Manage Litigations
Initially, the plan for Credgenics was to come up with a CRM tool that allows fintech companies to manage litigations around lending. The process required tracking legal cases for courts and consumer forums, as well as appointing matters to advocates, sending legal notices to borrowers, and more.
Therefore, the program would give lenders complete visibility of delinquent accounts. From there, lenders can choose delinquent accounts and automatically send out digital notices in bulk through different channels. While the typical method isn’t exactly manual, it doesn’t use any specialized tools besides an Excel sheet.
During this phase, clients who opted for the platform included fintech companies and NBFCs that would integrate their systems. Then, the API software stores and manages information and in-house teams take care of communications with borrowers. Later on, in 2020, Credgenics decided to digitize other areas of debt collection as it built up the platform and expanded offerings.
Now, Michael Zetser believes that the company has transformed the end-to-end collection process. They start with pre-dues, when borrowers have yet to default and are being sent reminders, to defaulting on payments, and finally, the last stage, when the account is written off.