How CredAvenue is building infrastructure to power debt market though technology

CredAvenue was founded with the view that debt markets presented a significant opportunity to be expanded at scale by leveraging technology, similar to the opportunity that the Indian equity markets presented nearly 25 years ago.

The company has achieved a significant milestone of enabling Rs 55,000 crore of debt deals. The platform also offers debt market participants a comprehensive set of products and solutions that facilitate transactions across a wide variety of products and solutions in this segment.

In a conversation with YourStory, Harshwardhan Mittal, CTO, CredAvenue, talks about how the company is leveraging technology to help the growth of India’s debt markets.

Edited excerpts from the interview:

CredAvenue and what it aims to do?

Harshwardhan Mittal (HM): CredAvenue aims to deepen debt markets in India and other parts of the world by building a robust infrastructure.

India’s debt markets are still in the early stages as compared to developed countries. For example, less than 10 percent loans get securitised in India compared to more than 30 percent in the USA.

The reasons it has not taken off in India is the lack of underlying infrastructure, lack of transparency, and inefficient price discovery. There is also the fact that a lot of discovery is still happening one-on-one.

The issue is even more persistent the moment you look beyond the top rated corporates – for such entities access to debt markets is way more difficult as compared to their counterparts in developed and other emerging economies.

Through CredAvenue, we are trying to address each of the above problems so as to make debt markets more efficient and inclusive. That is the vision with which we have built CredAvenue. We think of it as not just another debt platform but a piece of credit infrastructure – in essence the impact and value proposition is way more significant and far reaching.

Leave a Reply

Your email address will not be published. Required fields are marked *