Fintech Startup Cred Acquires Lending SaaS Startup CreditVidya

Tiger Global-backed fintech startup Cred announced on Tuesday that it would invest an undisclosed sum to acquire a 100% share in CreditVidya, a startup that provides lending as a service and is funded by Kalaari Capital and Matrix Partners.

The transaction involves a mix of cash and equity and will only be finalized after receiving all necessary approvals, the business said in a statement. The deal’s financial specifics were kept confidential.

“A major factor in driving financial success is extending credit availability. The founder of Cred, Shah, stated in a statement that CreditVidya’s unique technology stack discovers trust signals in underserved cohorts.”

By acquiring CreditVidya, a company that serves clients without credit scores, Cred is now able to grow its customer base and environment.

Abhishek Agarwal, co-founder and CEO of CreditVidya, stated: “We’ve invested in building products that offer financial services to credit under-served Indians through our partners, revolutionizing how risk is assessed and trust measured to achieve financial inclusion.”

In 2012, Agarwal and Rajiv Raj launched the CreditVidya company in Hyderabad. It offers a platform for software-as-a-service that enables firms to implement unique credit solutions. The company was last valued at $30 million, and since its founding, it has raised around $10 million in the capital.

“We are delighted to learn from the CRED team in the next phase of our growth, as we establish brand and scale distribution,” Agarwal continued.

As stipulated in the acquisition agreement, the two businesses will carry on independently. All of the perks provided to Cred team members, including its employee stock option program, will be available to CreditVidya’s 200+ team members.

Cred, based in Bengaluru and founded in 2018 by serial entrepreneur Kunal Shah, started as an app that allowed users to pay credit card bills and gave them rewards in the form of “Cred” coins that could be used at a variety of partner establishments. The company has since expanded into loans and online shopping.

The business entered the larger payments market last month with the introduction of “Scan and Pay” on the Unified Payments Interface (UPI) platform, going up with competitors like PhonePe, GooglePay (Gpay), Paytm, and the government-backed Bhim UPI smartphone applications, among others.

Numerous renowned investors have funded it, including the Singaporean wealth fund GIC, Tiger Global, Sofina Ventures, Coatue, Insight Partners, FalconEdge, and Dragoneer.