The business-focused credit marketplace CredAvenue recently announced a $ 90 million Series A round led by Sequoia Capital. Although it was one of the largest Series A (equity) financing rounds ever raised by an Indian startup, the company did not disclose details such as the round’s resolution, valuation, and ownership structure.
Trickypedia has deciphered the largest series A round through regulatory filings. The company has made a special resolution to allot 1,88,45,083 preferred shares and 70 shares at an issue price of Rs 351 per share to raise Rs 661.5 billion, or nearly $ 90 million.
Sequoia led the round at Rs 257.3 crore while Lightspeed brought in Rs 147 crore. TVS Shriram has invested Rs.121.3 billion while Kunal Shah’s LightRock and CRED have contributed to the funding round with Rs 106.6 crore or 29.4 crore.
Corresponding Trickypedia‘S The Chennai-based company is estimated to be valued at 3,050 billion rupees, or $ 410 million after receipt of funds.
After the allocation of this round, Vivriti emerged as the largest shareholder with 58.30%. Founded by the team at CredAvenue, Vivtri is a non-bank finance company (NBFC) backed by Lightstone. Gaurav Kumar and Vineet Sukumar are co-founders of Chennai-based NBFC.
Sequoia owns 8.54%, while Kumar and Sukumar each hold 7.77% of CredAvenue. Lightspeed and LightRock command 4.88 and 3.52%, respectively. Please refer to the pie chart for the complete shareholding structure.
CredAvenue’s platform connects companies looking for credit with financial institutions and other investors. Solutions include seller and dealer finance and a bond marketplace that provides access to exclusive primary and secondary bonds. According to the company’s website, it has an association with more than 500 banks and NBFCs to provide loans to over 1,000 companies.
FY20 was CredAvenue’s first year of operation, with operating revenues of Rs 24.93 billion and Rs 6.65 billion lost in that period.
CredAvenue’s funding has been the largest Series A round for any startup in India in terms of equity funding. In July, the e-commerce roll-up company GlobalBees shoveled up $ 150 million in its Series A round that included $ 75 million in debt. The top Serie A startups also include Ola Electric, Mensa and Fampay.