New Delhi, March 11 -- Software-as-a-service (SaaS) company Perfios said Tuesday it has acquired debt management and collections platform CreditNirvana, as it seeks to bolster capabilities in collections and debt management.
It didn't disclose the financial terms of the transaction.
The development comes less than a month after the Bengaluru-based company acquired fraud detection platform Clari5 for an undisclosed amount.
The acquisition of CreditNirvana will help Perfios tap into a high-growth market with its full-stack, technology-based approach to debt recovery and collection, where lenders spend billions of dollars every year, the company said in a statement.
"This acquisition is a strategic step in expanding our product suite and strengthening our capabilities in debt management and collections... further solidifying Perfios as a full-stack, tech-first financial technology provider," said Sabyasachi Goswami, CEO of Perfios.
Moxie Capital acted as the sole financial advisor to CreditNirvana on this transaction.
Perfios was founded in 2008 by VR Govindarajan and Debashish Chakraborty as business-to-business (B2B) SaaS company serving the banking, financial services and insurance industry in 18 countries. It provides software platforms and products to financial institutions, helping them in the process of origination, onboarding, decision-making, underwriting and monitoring processes.
Private equity firms Warburg Pincus and Kedaara Capital and venture capital investors Bessemer and Teachers' Venture Growth collectively own almost 87% in the unicorn, while the founders own around 10%.
Meanwhile, CreditNirvana was founded in 2019 by Raj MKK and headquartered in Bengaluru. It offers an AI-based, end-to-end debt management platform that automates the entire debt collection lifecycle. It serves banks, non-banking finance companies, fintech companies, and asset reconstruction companies. Its clients use the platform to optimize debt recoveries, reduce delinquencies, and enhance operational efficiency while reducing costs.
The startup claims that its platform manages a collection portfolio exceeding $9 billion, handles over 42 million loan accounts, and supports nine types of loan portfolios.
For FY24, CreditNirvana's standalone revenue from operations jumped nearly 150% to Rs 11.8 crore from Rs 4.7 crore, while loss narrowed to Rs 4.5 crore from Rs 5.9 crore, according to VCCEdge, the data research platform of VCCircle.
In 2020, it had raised Rs 1.14 crore in a pre-Series A funding round from Cornerstone Venture Partners and software company Vibhati Labs.
Published by HT Digital Content Services with permission from VC Circle.