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Debt marketplace Credavenue acquires 75% stake in Spocto for Rs 400 cr

Debt marketplace Credavenue acquires 75% stake in Spocto for Rs 400 cr

Business

Debt marketplace Credavenue acquires 75% stake in Spocto for Rs 400 cr

Debt marketplace Credavenue on Monday announced that it has acquired a 75.1 per cent stake in Spocto Solutions, a digital collection organization, for Rs 400 crore.



A company spokesperson said the Chennai-based Credavenue has paid Rs 400 crore for gaining majority control of the five-year old Spocto.

Post-deal, the statement from Credavenue said it will now be the first global debt marketplace that caters to every stage of the enterprise lending lifecycle. Expanding its product offerings to include a digital collection solution for lenders will improve its value proposition to the banking and financial sector, the company added.

Spocto, which offers a package of collections based on solid algorithms, will help in risk mitigation and fraud by tracking absconding borrowers through any digital footprint to any corner of the world, the statement said, adding this will help improve collection efficiencies for clients at low costs.

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, Credavenue’s founder and chief executive Gaurav Kumar said.


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The acquisition will shrink the resources and time required for collection while improving the recovery rate, and improve the overall asset quality of clients, he added.

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, Sumeet Srivastava, co-founder and chief executive of Spocto, said.


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