BACK

#026 Why we invested in Credilio

Wed, 08 Jun 2022 10:08:52 GMT

Cornerstone Ventures

Credilio is building India’s largest ‘phygital’ distribution platform of financial products to provide credit access to millions of Indians across the country using AI-driven personalization and hyper-contextualization.

Credilio’s 2x founding team - Anand Kapadia, Aditya Gupta & Sandeep Ghule (l-r)

Credilio has built deep-integrated workflows with some of the largest banks and nbfcs in India to complete the entire product application digitally - right from lead generation to final approval decision in hours !

Credilio works with two types of distributors - (1) Independent Financial Advisors (IFA) for assisted applications and (2) Consumer-focused Digital Platforms for self-serve application. To IFAs, Credilio provides a mobile app with an extremely ease-to-use interface to manage lead gen, accept application, access financial products from all banking partners and complete the application journey. To Consumer platforms, Credilio provides APIs via which the platforms can access the financial product and allow their customers to complete the product application journey from within the partner platform

With the above background of the Company, I’ll jump right into ..

Our Investment Thesis for Credilio

Credilio is a great example of a scalable solution solving a pressing problem, with a large market opportunity, executed by founders with deep domain experience and proven success and coupled with a sound, profitable business model !

Highly Scalable Solution - The fully self-serve solution for IFAs and an API based solution for Corporates makes the platform highly scalable from technology standpoint. The business and the product is built in a way that it can be replicated across geographies and product categories - opening an even larger market for Credilio to tap into !
Large Market Opportunity - India’s retail sector is credit starved. As per industry reports, India’s retail credit penetration is ~15% of the country’s GDP, while the similar stats for developed nations like USA & UK is ~75%+. So, a huge potential for retail credit growth. To top this, more than 50% of credit products are sold via assisted journeys - i.e., financial advisors and agents.
Experienced Founding Team - Anand, Aditya & Sandeep has previously cofounded a fintech payments company which they successfully exited in 2019. We’ve known the team since, and found them to have strong domain knowledge, complimenting skills and a proven track-record of execution at scale. We believe this team that stuck together through thick & thin has the resilience to build a resilient business !
Positive Unit Economics - Every transaction that flows through Credilio’s platform is margin accretive. The funding is required to blitz-scale the operations pan-India and not fund their working capital. With sufficient funding, their proven model in one region can now be replicated across all other regions in India and with other partners
Potential for Category Leadership - The largest digital distribution platform in India - PaisaBazaar has disbursed only ~Rs 6,600 Cr of retail credit in FY22 - that is just ~2% of the total retail credit availed in the period. With its unique distribution strategy; fully integrated, end-to-end application journeys and AI driven personalization; Credilio has a strong potential to become the leader in this category
Delightful Customer Experience - At the heart of product is the AI-powered recommendation and personalization engine. The platform can intelligently predict & recommend the best suited product for a customer based on his/her profile with high probability of successful underwriting. It can intelligently recommend best-fit products based on the context of the customer journey (Eg: offering an Indigo Rewards HDFC Credit Card to a customer who is booking an Indigo flight on a partner OTA platform)

Basis our thesis above, we decided to lead the pre-Series A investment round in Credilio and will continue to back the team and work with them to become a Centaur (a $100 mn ARR co.) over the next few years !

~ Vatsal

Learn more about: CSVP Fund | CGES Index | Enterprise SaaS

BACK

Disclaimer:

The data provided on this website (www.csvpfund.com) is for informational purpose only.

Any information provided on this website or any of the other digital assets owned & maintained by Cornerstone Venture Partners Fund, Mumbai, India (“CSVP”)and managed by the Investment Manager, Cornerstone Ventures Investment Advisers LLP, Mumbai India, does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments.

The Cornerstone Global Enterprise SaaS Index (“CGES Index”) ™ is a trademark of CSVP. The CGES Index is created & maintained using a proprietary algorithm and is to be used for informational purpose only. It is not to be construed as an investment advice or investment recommendation in any of the constituent companies / stocks that are directly or indirectly part of the Index. The Index is created using publicly available data published on the websites of the respective companies. All data presented is as per our internal research and analysis leveraging publicly available data and is being presented only for academic deliberation and discussion purposes and is not to be viewed as any specific commentary / recommendation / evaluation / conclusion on any of the companies / stocks that are directly or indirectly part of the CGES Index.

CSVP also analyses, maintains, and publishes certain financial and non-financial metrics (“SaaS Metrics”) on the Index at an aggregate level, and not at a specific company / stock level that constitute the CGES Index. These SaaS Metrics are provided purely for informational purpose and CSVP assumes no liability for accuracy, suitability, or completeness of the SaaS Metrics. The SaaS Metrics are created using publicly available third-party information and CSVP does not claim any ownership of the sourced data. CSVP is not responsible for the accuracy, suitability or completeness of the information originally disclosed by the owner of the information and any information provided herein. CSVP accepts no liability and offer no guarantee as to whether the information is up to date, correct or complete.

CSVP may have used third-party data, information, and content (including all text, data, graphics, and logos) on the website. CSVP assumes no ownership and intends no infringement of rights, titles, and claims (including copyright, brands, patents and other intellectual property or other rights) of the respective owners or authorized users of the respective content. Use of such content is from publicly available sources and for indicative and informational purpose only in good faith. All trademarks and registered trademarks are the properties of their respective owners. This website may contain references or links to other websites. References and links to third-party websites do not mean that CSVP adopts the content behind the reference or link as its own. When first setting up the link, CSVP will have checked the linked site for illicit content and found none at that time. However, CSVP have no influence over the current and future design or content of such linked sites and will accept no liability for such content or design. Any use of these websites is at your own risk. The obligation of CSVP to remove or block the use of information according to the general laws from the time of knowledge of a concrete violation of the law remains unaffected.

Disclaimer

Krafted with

by Unico Connect