CreditMantri raises USD 7.6 Million in Series B funding

Credit management services company CreditMantri has raised Rs. 51.4 crore (USD 7.6 million) in Series B round of funding.

The funding was led by Accion Frontier Inclusion Fund, managed by Quona Capital along with Newid Capital and existing investors - Elevar Equity, IDG Partners, and Accion Venture Lab.

A vast majority of Indian consumers have limited access to formal credit. CreditMantri was created to bridge this gap between consumers and lenders and thereby make credit possible.

Using a combination of credit reports and data from social media, and mobile phones, CreditMantri enables consumers to create their credit profile in order to understand their credit potential.

Alternate data is particularly important for users who have limited choice and access to credit. The company has served over 1.4 million users till date with over 60 percent of users providing access to over 2000 credit relevant data points in-order to build their credit profile using CreditMantri's proprietary algorithm. All data is captured or shared only after obtaining explicit consumer consent.

The CreditMantri profile helps users understand their credit potential and this understanding helps them make informed and considered credit decisions. Users can discover loans, credit cards best matched to the profile from lenders across the risk continuum, resolve and dispute issues on existing loans and borrowings, and reduce current borrowing costs.

On the supply side, CreditMantri provides financial institutions access to better quality consumer risk profiles besides helping these institutions cut down on expensive credit operations processes and disburse loans faster.

Consumer demand data on the platform is used to create custom credit products to address unmet credit needs. Rich profiling data results in lenders not having to waste resources on applications which do not meet their credit criteria. Over 40 lenders already use the platform to source consumers, resolve past loan issues and expand into new customer segments.

"Digitisation of Indian consumers' financial data, pioneered by CreditMantri, is the catalyst that will help build a truly financially inclusive India," said Ganesh Rengaswamy, a Founding Partner at Quona Capital.

CreditMantri will use the funds to grow its user base, strengthen its' product proposition and build out the team.