Matrix Partners has invested in B2B financial data technology platform CreditVidya leading a $5-million (Rs 32-crore) round. The Series-B round of funding also saw participation from existing investor Kalaari Capital which had previously invested in the company in June 2016.
With this, the total capital raised by CreditVidya touches Rs 45 crore (about $7 million). “By leveraging the India stack, we have managed to reduce the cost of underwriting for a smallticket 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 twowheeler loans, personal loans and consumer durable loans,“ said Abhishek Agarwal, cofounder, CreditVidya.
The Mumbai-based company works with over 20 lending institutions including Bajaj Finance, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, IndusInd Bank amongst others, to apply big data analysis for credit underwriting to enable assessment of risk for first-time borrowers more accurately.
Launched in 2013, CreditVidya uses non-traditional data sources to help lenders with informa tion on credit scores for first-time borrowers. The company uses data from a host of sources including pending payments or categories of purchases, social net works and trans actional data such as mobile re charges or online retail spends to arrive at credit scores.
“Every bank and NBFC has now embraced technology-ba sed sourcing and underwriting to help bridge the credit gap for first-time borrowers. We believe in CreditVidya’s approach to enable alternate data-based credit underwriting for this lending ecosystem. Their ability to find unique insights by acquiring and processing complex da ta while giving very simple tech solutions sets them apart“, said Vikram Vaidyanathan, MD at Matrix Partners.
CreditVidya will use the funds to add a wide range of fraud and verification services to its existing big data underwriting platform. “A lot of our work caters towards identity and fraud solutions as also credit-risk assessment of customers. To be able to do this, we want to build more products, invest in technology, artificial intelligence or science to build a framework that allows for seamless integration with lenders so they can underwrite first-time borrowers much more efficiently, ” Agarwal told ET.
To enable better implementation of the AI-based algorithms, the company is looking to scale up its employee base from 74 to 100 over the next 6-9 months.
CREDIT: ECONOMICS TIMES