Credgenics, a fintech startup, plans to turn a profit in FY24.

CEO and co-founder of Accel-backed Credgenics, a Saas-based platform for debt collection and resolution, Rishabh Goel, told FE in an interview that the company is expected to turn a profit by the end of this fiscal year.

We were able to report a profit of about Rs 50–60 lakh in the first year of business, but we had to make significant investments in R&D, technology, HR, and products. We should reach net profitability by the end of the year after breaking even on a monthly basis earlier in the year, according to Goel.
By relying on the use of its debt resolution solutions, which include digital collections, litigation management, a mobile app for field collections, and more, the company also intends to more than double its topline in FY24, from over Rs 100 crore in FY23 to Rs 200–250 crore.
More than a hundred financial institutions, including ICICI Bank, HDFC Bank, IDFC First Bank, Mahindra Finance, IIFL Finance, and DMI Finance, are among Credgenics' clients in India and Indonesia. Currently, the company is in charge of 60 million retail loan accounts, with a $5 billion monthly loan book value.
Banks and NBFCs collectively make up about 80% of its clientele, with fintechs accounting for the remaining 20%. "I think there are some areas like Chennai and Jaipur where there is a huge penetration of NBFCs, but we are not there yet in many of them," Goel stated in reference to the penetration rate.
In the later quarters of this fiscal year, when retail lending activity is higher due to holiday spending, Credgenics anticipates a strong uptake of its debt resolution offerings.
"I believe that compared to the last two quarters, when the demand for credit from both consumers and MSME's has increased, the pace of lending has slowed down in the first two quarters. This harvesting season is when a lot of agri-based financing occurs, he said.