Lending Is A Collections Business: Credgenics

For India’s financial sector, 2022 was an eventful year. The central bank put the fintech sector under the spotlight and laid down operational guidelines for digital lenders and for debt collectors. 

The New Year is expected to be better and tech-based collections market is expected to grow further. According to Credgenics, a SaaS platform for debt collections, India’s debt collection software market is expected to touch over $272 million by 2027 from the $175 million recorded in 2022. The company is making the most of the opportunity and is aims to ‘digitize’ the debt collection market.

But it is not expected to be a smooth ride in 2023. Inflation, recessionary fears and geopolitical tensions have made companies turn conservative. Most have adopted a wait and watch policy and are not willing to stick their necks out in case growth slows down further. 

According to Rishabh Goel, Co-Founder & CEO, Credgenics, “While experts are predicting headwinds for certain geographical regions worldwide, the impact in our chosen markets - India and South East Asia is likely to be minimal. 

The demand for digital, simpler, and faster access to financial services, especially retail credit, is predicted to see a significant jump as a result of sustained economic growth and rising consumer purchasing power.”

Without sharing 2022 revenue numbers, Credgenics states that the company had “a fantastic year in 2022, both in terms of business growth and delivering tremendous business value to our customers using our technology solutions.” Rishabh Goel adds, “We are handling more than 60 million loan accounts annually. With the launch in Indonesia, we are moving ahead firmly on our South-East Asia expansion plans.”

With India as the base market, Credgenics sees future expansion and growth in business in the SEA region. The digital debt collector’s Indonesia office was opened in 2022 and it is still early to gauge how the company is doing the market. The SEA expansion could be good for the company has “a few early customers along with a very robust pipeline of prospects that are in different stages of discussions.”

Outlining how Credgenics could grow in SEA in the next few years, Rishabh Goel states, “With a strong push for digitization initiatives in Indonesia, we are seeing a lot of queries for exploring new technology in debt collections. The demand for cutting-edge solutions that leverage the power of data in collections is being fueled by growing pressure on margins, innovations in consumer lending, and the need to provide a differentiated customer experience.”