Financial technology company CreditVidya, which helps lenders underwrite loans to first-time borrowers, has raised $5 million, led by Matrix Partners. The round also saw participation from existing investor Kalaari Capital, who led its previous round in 2016.
Founded in 2013, the Mumbai-based start-up uses traditional as well as alternative data sources to provide customer profiling, credit risk assessment and fraud detection services. It helps lenders accurately assess risk of lending to new-to-credit and thin file customers.
Lenders benefit from higher approvals, lower cost of underwriting and more effective selling. Its customers include Bajaj Finance Ltd, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, IndusInd Bank, InCred and IIFL, among others.
Abhishek Agarwal, Co-Founder and CEO, CreditVidya, said, “Our big data underwriting platform applies advanced machine learning techniques to identify creditworthy customers among the 300 million deserving individuals who do not have any credit history. By leveraging India Stack, we have managed to reduce the cost of underwriting for a small ticket loan by over 50% and reduced the turnaround time for loan disbursal from several days to under 30 minutes.''
“Every bank and NBFC has now embraced technology-based sourcing and underwriting to help bridge the credit gap for first-time borrowers. CreditVidya’s ability to find insights by processing complex data while giving simple tech solutions sets them apart. We think India’s fin-tech story is just getting started,” said VikramVaidyanathan, Managing Director, Matrix Partners.
BalaSrinivasa, Partner, Kalaari Capital
has achieved remarkable growth, since the last round of funding. As lenders aggressively expand their retail credit portfolios, it is imperative that they decrease the cost of customer acquisition and reduce turnaround time without compromising on portfolio risk. CreditVidya’s ability to innovate and add value to lenders has made them the provider of choice to leading banks and NBFCs in India. We see technology and a strong team as the primary factors driving this expansion, and are delighted to participate in this round of investment.”