Credenc Web Technologies Pvt. Ltd.

Credenc Web Technologies Pvt. Ltd. Foundation Story

Credenc Web Technologies Pvt. Ltd., founded in 2017, is a fintech startup that combines education and finance to support meritorious students. The company's mission is to ensure that talented students are not deprived of higher education due to financial constraints. Here is a look at the vision, early days, and the founding team of Credenc.

Vision and Early Days

Credenc was born out of the need to address the financial barriers that prevent many students from pursuing higher education. The founders recognized that traditional lending practices often favor students from financially stable backgrounds, leaving many deserving students without access to necessary funds. Credenc's vision is to create a more inclusive education financing system by focusing on the student's future employability rather than their family's financial status.

The early days of Credenc involved developing a proprietary AI underwriting model that could predict a student's future earning potential. This innovative approach allowed Credenc to offer merit-based lending, ensuring that the most talented students could secure the funds they needed for their education. The company started by offering loans for various educational pursuits, including study abroad, study in India, and up-skilling courses[1].

Founding Team Background

Credenc was founded by Mayank Batheja and Avinash Kumar. Mayank Batheja, one of the co-founders, serves as the Chief Product & Technology Officer, Chief Marketing Officer, and Whole Time Director. He has been instrumental in shaping the company's product and technology strategy. Avinash Kumar brings his expertise to the table, contributing to the company's growth and development. The founding team's background in finance and technology has been crucial in creating Credenc's unique lending model[1].

The founders' experience and vision have driven Credenc to become a leader in the education lending sector. Their commitment to using technology to enhance the lending process has set Credenc apart from traditional lenders. The team's focus on student-centric services has also helped in building a supportive ecosystem for students and their families.

Credenc Web Technologies Pvt. Ltd. Business Evolution

Credenc has undergone significant evolution since its inception in 2017. From its initial concept to its current state, the company has expanded its services, achieved key growth milestones, and broadened its product portfolio. Here is an overview of Credenc's business evolution.

From Initial Concept to Current State

Credenc started with a simple yet powerful idea: to finance students based on their merit and future employability. The initial concept involved developing an AI-powered underwriting model to predict students' future income. This model has been refined over time, enabling Credenc to offer loans quickly and efficiently. Today, Credenc is more than just a lending platform; it is a comprehensive student education ecosystem[1].

The company has expanded its services to include support for accommodation expenses, savings, forex expenditures, and investments. Credenc is also in the process of launching India's first student-focused neo-bank, which will further enhance its offerings. This holistic approach to student development sets Credenc apart from other education lenders.

Key Growth Milestones

Credenc has achieved several key milestones since its founding. Here are some notable ones:

• Launch of AI Underwriting Model: Credenc developed and launched its proprietary AI underwriting model, which tracks over 15 million data points to predict students' future earning potential.
• Expansion of Services: The company has expanded its loan offerings to cover K-12 school fees, online up-skilling courses, higher education, and study abroad courses[2]).
• Development of Student Ecosystem: Credenc is developing a comprehensive student education ecosystem that includes services for credit, accommodation, savings, forex, and investments[2]).
• Planned Launch of Neo-Bank: Credenc plans to launch India's first student-focused neo-bank, which will further enhance its financial services for students[2]).
• Geographical Expansion: The company aims to expand its reach to tier 2 and 3 geographies in India in the coming year[2]).

Product Portfolio Expansion

Credenc's product portfolio has grown significantly over the years. Here are some of the key products and services offered:

• Education Loans: Credenc offers loans for various educational pursuits, including study abroad, study in India, and up-skilling courses[1][2]).
• Student Ecosystem Services: The company provides services for credit, accommodation expenses, savings, forex expenditures, and investments[2]).
• Neo-Bank Services: Credenc is set to launch India's first student-focused neo-bank, which will offer a range of financial services tailored for students[2]).
• Support Services: Credenc also offers support services such as resume review and interview practice to help students realize their full potential[2]).
• Digital Loan Processing: The company uses AI to automate loan processing, reducing the time taken to approve loans to less than 48 hours[2]).

Credenc Web Technologies Pvt. Ltd. Technology Infrastructure

Credenc's technology infrastructure is a cornerstone of its operations. Here is an overview of the core platform architecture, security and compliance framework, and the innovations in its industry.

Core Platform Architecture

Credenc's core platform is built around its proprietary AI underwriting model. This model uses machine learning algorithms to predict students' future earning potential based on over 15 million data points. The platform is designed to be highly efficient and automated, allowing for quick loan processing and decision-making[2]).

The platform is fully digital, enabling students to easily apply for and manage their loans online. This digital focus simplifies and streamlines the loan process, making it more accessible and user-friendly for students[2]).

Security and Compliance Framework

Credenc places a strong emphasis on security and compliance. The company ensures that all data collected is securely stored and processed in compliance with relevant regulations. Here are some key aspects of Credenc's security and compliance framework:

• Data Encryption: Credenc uses advanced encryption methods to protect sensitive student data.
• Compliance with Regulations: The company complies with all relevant financial and data protection regulations.
• Audit and Risk Management: Regular audits and risk management practices are in place to ensure the integrity of the platform.
• Secure Loan Processing: The automated loan processing system is designed with multiple layers of security to prevent any unauthorized access or data breaches.

Innovation in its Industry

Credenc is a pioneer in using AI for education lending. Here are some innovations that set Credenc apart:

• AI Underwriting Model: Credenc's use of AI to predict students' future earning potential is a significant innovation in the education lending sector[2]).
• Automated Loan Processing: The company's automated loan processing system reduces the time taken to approve loans, making it faster and more efficient than traditional lenders[2]).
• Student-Centric Services: Credenc's holistic approach to student development, including services for accommodation, savings, and investments, is a unique offering in the industry[2]).
• Digital Focus: The fully digital platform ensures that students can easily access and manage their loans, enhancing the overall user experience[2]).

Credenc's innovations have disrupted the traditional education lending market, providing a more inclusive and efficient way for students to finance their education.

Company Market Impact

Credenc Web Technologies Pvt. Ltd., founded in 2017, has been making significant strides in the Indian market, particularly in the education finance sector. Here’s a look at how the company is impacting its users and the market.

User Base Growth

Credenc has been focused on expanding its user base by providing an online platform for students to apply for student loans. This platform is designed to be user-friendly, making it easier for students to access financial aid for their education.

Credenc's user base has grown steadily since its inception. The company's acquisition by Capital India Finance in 2021 has further boosted its reach. This acquisition has enabled Credenc to tap into a broader network of lenders, thereby increasing the number of students it can serve.

The platform's simplicity and the ease of application process have attracted many students. Here are some key features that contribute to its user base growth:

• Easy loan application process
• Quick approval and disbursement of loans
• Flexible repayment options
• Access to a wide range of lenders
• Customer support for any queries

Market Share Expansion

Credenc is continuously working to expand its market share in the education finance sector. The company's strategic approach involves deepening its integrations with lenders and improving its service offerings.

Credenc's market share expansion is driven by its ability to serve a growing customer base. By forging deeper integrations with a broader network of lenders, the company is able to offer more options to its users. This strategy helps in attracting more students who are in need of financial assistance for their education.

Here are some ways Credenc is expanding its market share:

• Increasing partnerships with lenders
• Enhancing the platform's features and user experience
• Expanding services to more educational institutions
• Offering competitive interest rates and terms
• Marketing and outreach programs to reach more students

Financial Inclusion Initiatives

Credenc is committed to financial inclusion by making education loans accessible to a wider audience. The company's initiatives aim to bridge the financial gap for students who cannot afford higher education.

Credenc's financial inclusion initiatives are centered around providing equal access to education loans. The platform ensures that students from all backgrounds can apply for loans, regardless of their financial status. This approach helps in promoting education and reducing the financial burden on students and their families.

Here are some of the financial inclusion initiatives by Credenc:

• Loans for students from low-income families
• Flexible repayment plans to accommodate different financial situations
• Collaborations with educational institutions to offer loan facilities
• Financial counseling and support for students
• Partnerships with NGOs to reach more students

Company Financial Journey

Credenc Web Technologies Pvt. Ltd. has had a notable financial journey since its inception. Here’s an overview of its revenue growth, path to profitability, and investment rounds.

Revenue Growth Story

Credenc's revenue growth has been influenced by its expanding user base and increasing partnerships with lenders.

The company's operating revenue for the financial year ending on 31 March 2021 was under INR 1 cr. Although the revenue is modest, the company's acquisition by Capital India Finance has opened up new avenues for growth. The integration with Capital India Finance has helped in scaling up operations and improving revenue streams.

Here are some factors contributing to Credenc's revenue growth:

• Increased number of loan applications and approvals
• Higher transaction volumes due to expanded lender network
• Improved service offerings leading to higher customer satisfaction
• Strategic marketing and outreach programs
• Partnerships with educational institutions

Path to Profitability

Credenc's path to profitability involves several strategic steps, including cost optimization and revenue enhancement.

Despite a decrease in EBITDA by -13.49% and a decrease in book networth by -22.93% for the financial year ending on 31 March 2021, Credenc is working towards achieving profitability. The company is focusing on optimizing costs and enhancing its revenue streams through deeper integrations with lenders and improved service offerings.

Here are some steps Credenc is taking to achieve profitability:

• Cost reduction measures
• Enhancing operational efficiency
• Increasing revenue through expanded services
• Improving customer retention rates
• Strategic partnerships to reduce costs and increase profits

Investment Rounds and Valuations

Credenc has received significant investment to support its growth and expansion plans.

Credenc was acquired by Capital India Finance in August 2021, marking a significant investment round for the company. The terms of the transaction were not disclosed, but this acquisition has provided Credenc with the necessary capital to expand its operations and enhance its service offerings.

Here are some key points about Credenc's investment rounds:

• Acquisition by Capital India Finance in August 2021
• Total raised: $27.5M (prior to acquisition)
• Investment used for expanding operations and enhancing services
• Focus on deepening integrations with lenders
• Improving technology and infrastructure

Company Strategic Partnerships

Credenc Web Technologies Pvt. Ltd. has formed several strategic partnerships to enhance its offerings and expand its reach.

Banking Collaborations

Credenc has collaborated with various banks and financial institutions to provide a wide range of loan options to its users.

Credenc's banking collaborations are crucial for its operations. By partnering with multiple lenders, the company can offer diverse loan options to students. This collaboration ensures that students have access to competitive interest rates and flexible repayment terms.

Here are some benefits of Credenc's banking collaborations:

• Access to a broader network of lenders
• Competitive interest rates and terms
• Flexible repayment options
• Increased loan approval rates
• Enhanced customer support from lenders

Merchant Partnerships

Credenc has partnered with educational institutions and other merchants to offer its services more effectively.

Credenc's partnerships with educational institutions help in reaching more students. These partnerships enable the company to offer loan facilities directly through the institutions, making it easier for students to access financial aid.

Here are some benefits of Credenc's merchant partnerships:

• Direct access to students through educational institutions
• Increased visibility and trust among students
• Customized loan solutions for different institutions
• Improved customer satisfaction through institutional support
• Enhanced brand reputation through partnerships

Technology Alliances

Credenc has formed technology alliances to improve its platform and service offerings.

Credenc's technology alliances are aimed at enhancing the user experience and improving the efficiency of its platform. By integrating with best-in-class technology, the company can provide seamless and secure services to its users.

Here are some benefits of Credenc's technology alliances:

• Improved platform efficiency and security
• Enhanced user experience through better technology
• Seamless integration with lenders' systems
• Real-time updates and notifications
• Advanced analytics for better decision-making