Titan Capital Garners Over 100x Return with Partial Exit from Credgenics
Early-stage investor Titan Capital has reportedly executed a partial exit from its investment in Credgenics, a platform specializing in debt recovery and legal automation. Sources familiar with the matter indicate that this partial exit has yielded Titan Capital a substantial return of over 100 times their initial investment.
Interestingly, this development follows closely after Credgenics secured a significant $50 million in Series B funding. The Series B round was led by Westbridge Capital and Accel, with participation from other strategic investors including Tanglin Ventures and Beams Fintech Fund.
The combination of Titan Capital’s successful partial exit and Credgenics’ recent substantial funding round showcases the dynamic nature of the investment landscape. Such events highlight the potential for significant returns on investment in technology-driven ventures like Credgenics, which has attracted notable interest and support from multiple investors.
According to insider information, Titan Capital has reportedly achieved an astonishing 116-fold return on their investment through the partial sale of their stake in Credgenics. It’s worth recalling that Titan Capital had taken the lead in a seed funding round for Credgenics, investing $300,000 in the company back in 2020. Notably, sources have revealed that Titan Capital contributed half of the total investment amount in that seed round.
This remarkable return on investment underscores the tremendous growth and success that Credgenics has experienced within a relatively short period. It also highlights the foresight of early-stage investors like Titan Capital in identifying promising startups and supporting them during their early stages, ultimately reaping significant rewards as these ventures flourish and mature.
Credgenics operates as a provider of sophisticated technology solutions for loan collections and debt recovery. The company’s services cater to a global clientele including banks, non-banking finance companies (NBFCs), and digital lending firms. Credgenics specializes in utilizing advanced technology to streamline and enhance the process of recovering debts and managing loan collections.
The company’s offerings have found traction in the financial industry due to their efficiency and effectiveness in handling debt recovery tasks. Credgenics boasts an impressive track record, managing a substantial portfolio of 11 million retail loan accounts. Moreover, during the fiscal year 2022, the company managed to oversee an extensive loan book valued at $47 billion. This scale of operations and the scope of its clientele underscores Credgenics’ impact in the financial sector, where efficient debt recovery processes are crucial for maintaining healthy financial operations.
Credgenics has established partnerships with a diverse range of clients, boasting a customer base of over 100 entities. Among these clients are prominent names in the banking sector such as ICICI Bank, Kotak Bank, IDFC First, and Axis Bank. Additionally, the company collaborates with numerous non-banking finance companies (NBFCs) and fintech firms, including IIFL Finance, DMI Finance, Loantap, MoneyTap, and others.
This extensive roster of clients underscores Credgenics’ broad reach within the financial industry, where its advanced debt recovery and loan collections technology solutions are utilized to optimize and streamline their operations.
Credgenics has reported significant milestones in its recent financial performance. The company asserts that it has achieved operational profitability, marking a notable accomplishment. Additionally, in the fiscal year 2022-23 (FY23), the company reached a revenue milestone of Rs 100 crore. However, it’s important to note that the audited financial statements for the last fiscal year have yet to be filed, which would provide a more comprehensive view of the company’s financial health.
In the preceding fiscal year, FY22, Credgenics disclosed a revenue from operations totaling Rs 32.54 crore. However, during the same period, the company experienced a loss of Rs 8.26 crore. These figures reflect the company’s financial performance in the years leading up to its recent achievements, providing insights into its growth trajectory and efforts to transition into a profitable operation.
Titan Capital, a prominent early-stage investor, has a track record of supporting successful startups, some of which have achieved unicorn status. Notable companies that Titan Capital has backed include Ola, Urban Company, Mamaearth, OfBusiness, and Razorpay. Over time, Titan Capital has made strategic decisions to either partially or fully exit from several startups, realizing returns on their investments.
Among the startups that Titan Capital has exited or partially exited from are Bewakoof, Unicommerce, ANS Commerce, and Netmeds.com. These exits represent a mix of different industries and demonstrate Titan Capital’s involvement in a diverse range of ventures. These strategic moves showcase the investor’s commitment to making informed investment decisions and strategically managing their portfolio for optimal returns.
Titan Capital’s involvement with both successful unicorns and various other startups underscores their role in shaping the growth and trajectory of numerous companies across different sectors.
