Creditas: Redefining Loan Recovery in the Digital Age

Creditas Solutions Pvt. Ltd. (Creditas), a debt-collection and recovery start-up, had revolutionized the loan recovery process in India by combining data and technology to educate and empower its consumers. Ethera, its software-as-a-service platform, was a great success, and the company was on track to make $7.39 million in the financial year 2021–22. In order to increase its customer base and profits, the company was now faced with two challenges. First, it needed to determine how to convince its clients to accept a new fee structure. To establish additional and consistent revenue streams, the company was attempting to implement a licensing-based monetization model rather than its current recovery amount–linked model. Second, it needed to determine how it should plan for business expansion. The company had received queries from banks in west and southeast Asia, creating expansion potential abroad, and it was also contemplating entering other banking operations, such as lending and insurance. The chief executive officer wondered which of these growth strategies made the most sense for the business at this moment. Should the company increase its services in the areas of lending and insurance or expand to a global market?