CreditMantri Finserve Pvt. Ltd, an online credit management startup, is set to raise a little over Rs 6 crore ($803,146 at current exchange rate) from a clutch of existing investors.
According to regulatory filings, the company has issued and offered 1.11 lakh Series B4 compulsorily convertible cumulative preference shares to investors Elevar Equity, Chiratae Ventures (formerly IDG Ventures) and funds managed by Accion Labs.
This development comes more than a year after VCCircle exclusively reported that CreditMantri was in talks with multiple private equity investors for a fresh round of funding.
As part of this exercise, each share has been issued at a face value of Rs 10 and a premium of Rs 533. While Chiratae’s IDG Ventures India Fund II has been offered 34,990 shares, Elevar’s Elevar M-III has been offered 27,992 Series B4 units.
Accion Frontier Inclusion Mauritius, Accion Africa-Asia Investment Company and Accion Venture Lab, LP have been offered 34,990, 4,899 and 9,097 shares by Chennai-based CreditMantri.
Following the completion of this issue, IDG Ventures India Fund II will hold 17.71% of CreditMantri on a fully diluted basis, while Elevar M-III will hold 14.19%. The three funds managed by Accion will cumulatively hold 31.83% of the credit management startup.
Prior to this exercise, CreditMantri secured a Series B cheque of Rs 51.4 crore ($7.6 million) from IDG Ventures India, Accion Venture Lab and Elevar Equity in 2017. In June 2015, the startup had raised $2.5 million (around Rs 16 crore then) in its Series A round.
CreditMantri was set up in 2012 by former Citibank executives R Sudarshan, Gowri Mukherjee and Ranjit Punja.
It functions as an online platform that helps customers to make borrowing decisions.
Punja earlier oversaw collections for all international consumer-lending businesses of Citibank across 53 countries.
Sudarshan worked with Citibank for 20 years across banking operations, technology and outsourcing.
Before joining CreditMantri, he was chief financial officer at TCS eServe Ltd.
Mukherjee has nearly two decades of experience across Citibank, Standard Chartered and HSBC.