AsiaCollect acquires Creditseva to crack India’s non-performing loans market

Photo credit: Nick Youngson / Alpha Stock Images

AsiaCollect, a startup that provides credit management services in emerging markets, has acquired Indian rival Creditseva for an undisclosed sum.

Founded in Vietnam and now based in Singapore, AsiaCollect allows banks and non-bank lenders to outsource management of their non-performing loans (NPLs) – in other words, money that they have lent to businesses and individuals that isn’t being repaid on time.

Using AI tech and psychometric analyses, AsiaCollect claims to offer debt collection and repayment solutions that result in “an optimal outcome for debtor as well as creditor.” It automates the contacting of debtors through automatic text messaging, interactive voice recordings, and predictive phone dialing.

In addition to outsourcing and advisory services, the Hyderabad-based startup also buys NPLs from lenders, and provides software to its clients.

AsiaCollect already operates in Indonesia, Vietnam, and the Philippines. The acquisition of Creditseva will help it to tap the Indian market for unsecured consumer NPLs, which it estimates to be worth US$150 billion.

As a result of the deal, Creditseva will adopt the AsiaCollect brand and offer the Singapore-based firm’s full suite of services to local clients.

AsiaCollect last raised funding in July this year, securing an undisclosed amount of capital from SIG Asia Investments and Dymon Asia Ventures to take its total funding to US$4.5 million. It also received seed funding from Forum, a Singapore-based fintech venture builder.

Creditseva – which provided credit lifecycle management tools – had previously raised funds from Singapore government agency SG Innovate, Pixvine Capital, and angel investors from Alibaba, Citibank, HSBC and PayPal.