B2B financial data technology platform, CreditVidya has raised $5-million in a Series-B equity round led by Matrix Partners. Existing investor Kalaari Capital has also participated in this round.
CreditVidya will use the newly raised capital to add a wide range of fraud and verification services to its existing big data underwriting platform. The funds will also be utilised to further improve AI-based credit underwriting algorithms that use over 10,000 data points for risk assessment.
Commenting on the development, Vikram Vaidyanathan, MD at Matrix Partners said, “Every bank and NBFC has now embraced technology-based sourcing and underwriting to help bridge the credit gap for first-time borrowers. We believe in CreditVidya’s approach to enabling alternate data-based credit underwriting for this lending ecosystem. Their ability to find unique insights by acquiring and processing complex data while giving very simple tech solutions sets them apart.”
Founded in 2013 by Abhishek Agarwal and Rajiv Raj, CreditVidya is harnessing the power of big data and advance machine learning techniques to re-imagine, recalibrate and re-build credit scoring. The company has over 20 clients which include banks and nonbanking financial institutions such as Bajaj Finserv, IDFC Bank, Tata Capital and Shriram Housing Finance. It has also garnered interest from other verticals such as insurance companies, e-commerce companies and e-wallets. Earlier in December 2016, the technology startup has partnered with Fullerton India to offer alternative data-based authentication and verification services.
Being a financial technology startup headquartered in Mumba, CreditVidya’s technology platform uses non-traditional data sources to provide credit scores to hundreds of millions of Indian customers. The technology platform helps lenders accurately assess the risk of new-to-credit and thin file customers. Lenders benefit from increased approval rates, lower cost of underwriting and more effective product cross-selling and upselling.
Abhishek Agarwal, Co-founder, CreditVidya, said “By leveraging the 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. Most of the work we have done so far is in unsecured products such as two-wheeler loans, personal loans and consumer durable loans.”
In June 2016, the company has raised $2 million in Series A funding from Kalaari Capital. Prior to this, CreditVidya has received angel funding from Siddharth Parekh from Paragon Partners and Silicon Valley-based angel investor Munish Mehta.