Fintech consolidation continues, Cred to buy CreditVidya

fintech startup credit has announced that it has agreed to purchase a lending software provider CreditVidya in a mix of equity and cash. The deal is subject to the approval of National Company Law Court (NCLT). Both companies declined to comment on the terms of the deal. “The transaction is a mix of cash and stock and completion of the acquisition is subject to required approvals,” Cred said in a statement. The company said both CRED and CreditVidya will continue to operate independently. CreditVidya’s 200+ team members receive all the benefits that CRED team members enjoy, including the ESOP program.
Founded in 2012, CreditVidya provides a lending platform that helps banks and non-bank financial institutions (NBFC) better evaluate loans. Through application programming interface (API) integrations, the company also helps businesses embed customized lending products for their customers. CreditVidya counts such as Kalaari capital, Matrix Partners and Bharat Innovation Fund as key investors. The company has raised around $10 million in total.

Cred is also a supporter of the CredAvenue lending marketplace. The company also co-operates with an active line of credit Credit Cash, which launched in 2020 in partnerships with other lenders. The company’s other acquisitions include corporate spend management platform Happay and liquor delivery app HipBar for its prepaid payment instrument (PPI) license.
Management talks about the takeover
Kunal Shah, Founder of CRED said: “Expanding access to credit is a key enabler of financial progress. CreditVidya’s patented tech stack uncovers confidence signals among underserved cohorts. We look forward to helping them build an inclusive lending ecosystem.”
Abhishek Agarwal, Co-Founder and CEO of CreditVidya said: “We have invested in the development of category-defining products that deliver financial services to underserved Indians through our partners and have transformed the way risk is assessed and trust measured to transform the financial to advance inclusion. As we move into the next phase of our growth as we build brands and scale distribution, we look forward to learning from the CRED team.”
“In recent years we have harnessed the power of technology to expand access to credit. As we enter a new era of growth with CRED, I would like to thank our team and partners for their continued faith in our mission,” added Rajiv Raj, Co-Founder and Director of CreditVidya.