TVG-backed Perfios acquires Bengaluru-based debt resolution platform CreditNirvana

Sabyasachi Goswami, CEO, Perfios

Bengaluru-based SaaS firm Perfios has acquired AI-driven debt management and collections platform CreditNirvana for an undisclosed amount, allowing it to add the new capability in its wide portfolio of B2B products.

The deal comes a month after the fintech firm—primarily focused on fraud detection and software solutions for underwriting, onboarding, decision-making, and risk management for financial institutions—acquired the fraud-detection platform Clari5 (CustomerXPs) to strengthen its crime management suite.

The latest acquisition also comes at a time when demand for end-to-end debt resolution solutions is on a rise. New-age platforms such as Credgenics, Spocto X (a Yubi Company), DPDzero, CredResolve, Rezolv, Creditas Solutions and Skit AI among others are streamlining the process for banks, NBFCs and fintechs, leveraging AI to add a layer of intelligence in collections and helping them minimise delinquencies.

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With lenders in India spending over $7 billion annually on debt recovery and collections, the deal positions Perfios to tap into a high-growth market with a full-stack, technology-first approach to financial services, the firm said in a statement.

“By integrating CreditNirvana’s AI-driven capabilities with our existing solutions, we aim to unlock new efficiencies. This addition reinforces our dedication to innovation and market leadership, further solidifying Perfios as a full-stack, tech-first financial technology provider. We are confident that this move will enable us to deliver greater value and drive the global financial ecosystem forward at scale and speed," Sabyasachi Goswami, CEO, Perfios, said.

Incorporated in 2019 and headquartered in Bangalore, CreditNirvana offers end-to-end debt management platform, managing a collection portfolio exceeding $9 billion and handling over 42 million loan accounts. The Cornerstone Venture Partners and G A Partners-backed firm was last valued at $8.36 million, and has raised $2.2 million till date.

“Perfios' deep expertise in financial technology and strong commitment to innovation gives us a significant advantage in expanding our reach and advancing our AI capabilities," said Raj MKK, Founder and CEO, CreditNirvana. "The partnership enables us to enter new markets, offer more sophisticated AI-driven solutions, and set new benchmarks in data-driven debt management and recovery”.

Warburg and Kedaara-backed Perfios, which turned unicorn last year after raising $80 million in a Series D1 round from Teachers' Venture Growth (TVG), has been undertaking the inorganic route to expanding its offerings across the board.

Besides adding new fraud detection and debt collection capabilities, it had in September 2023 acquihired Chennai-based open finance platform Fego.ai to broaden its international presence.

With the deal, Perfios got access to Fego's reach in 18 countries, and over 1,200 financial institutions clientle, offering them software solutions for underwriting, onboarding, decision-making, and risk management.

The firm's FY24 net profit surged 9.2X to Rs 71.67 crore, driven by a 37.1 percent rise in revenue at Rs 557.8 crore. Its domestic operations contributed Rs 505.6 crore to its revenue, while international operations accounted for Rs 52.21 crore.