Kalaari Capital Invests USD 2 Mn in Mumbai based CreditVidya

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In India lending business has it’s roots since the inception of time. Each one of us need money for some purpose or the other purposes. It is surprising that in  a young country like India there are only 20% people who have CIBIL scores and hence they have access to credit.

The remaining 80% population don’t have credit score and hence they lack the easy access to loan through NBFCs or Banks. In such scenario they get their needs fulfilled either through Peer to Peer lending or loans at very high interest rates.

In both cases it’s not easy to live for them after getting loan, we have heard stories how people lose their lands, how generations after generations work just to repay the loan.

Un-availability of credit report is not only a problem for people like us but it impacts the Banks or NBFCs as well. There are good customers which can be given loan but in the absence of a credit score they are not able to do so.

When we talk about India – The fundamental thing which separates us from rest of the world are – Penetration of Smart Phones, Easy access to Internet etc.Using these services we leave digital footprints which can be a proxy to our Credit Worthiness.

CreditVidya which is a Mumbai based startup understood that this gap can easily be filled by using non-traditional data fueled by advance machine learning algorithms.

CreditVidya, announced today that it has raised USD 2 million in Series A funding from Kalaari Capital.
The investment will support CreditVidya’s plans to continuously advance their technology platform and launch additional products that help lenders approve more customers, minimize fraud rates and accelerate verification processes of potential customers.

Speaking about the investment, Abhishek Agarwal, Co-founder and CEO of CreditVidya said,

“Non-traditional internet and mobile data sources provide a rich source of social, behavioural and transactional data which when combined with advanced analytics is fuelling a new wave of credit risk assessment. Our big data platform leverages over 10,000+ such unique digital data points to assess the creditworthiness of a potential borrower. We work very closely with our lending partners to develop customized scorecards for their product offering so that they can approve more creditworthy customers. The goal to drive financial inclusion by enabling access to credit through our technology platform is what motivates us!”

 

“Currently, credit bureaus rely heavily on traditional data streams such as details of repayment of loans and credit cards to generate credit scores. India’s demographic profile consists primarily of people without a credit history. CreditVidya’s solutions enable lenders to increase profitability by more accurately assessing the credit risk of these new-to-credit customers. We are confident that we will be able to leverage Kalaari’s expertise in scaling technology businesses to bring fair and transparent credit to millions of Indians.”

added Rajiv Raj, Co-founder and Director of the firm.

Together, Abhishek and Rajiv bring a wealth of expertise from their backgrounds in credit risk management, data analytics and retail lending. The company’s current clientele includes banks and non-banking financial institutions such as Fullerton India, Bajaj Finserv, IDFC Bank, Tata Capital, Shriram Housing Finance and it has also garnered interest from other verticals such as insurance companies, e-commerce companies and e-wallets.

According to Bala Srinivasa, ‎Partner at Kalaari Capital,

“ We are excited to partner with CreditVidya in their mission to reimagine credit scoring in India. We have an opportunity to drive economic growth by enabling lenders to accurately assess credit risk of the 800 million un-scored Indians, by using CreditVidya’s platform.”

CreditVidya has previously received angel funding from Siddharth Parekh from Paragon Partners and Silicon Valley-based angel investor Munish Mehta.

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About CreditVidya:
CreditVidya, is a financial technology start-up headquartered in Mumbai. Founded in 2013, CreditVidya’s technology platform mines the vast unstructured data available via digital footprints and other non-traditional sources to provide credit scores to hundreds of millions of Indian customers. The technology platform helps lenders accurately assess risk of new-to-credit and thin file customers, thus helping lenders increase approval rates, reduce the cost of underwriting and effectively manage cross-selling and upselling, resulting in higher customer approvals. CreditVidya’s clientele includes leading Banks and NBFCs
For more information visit: http://www.creditvidya.com/

About Kalaari Capital:
Kalaari Capital is an early-stage, technology-focused venture capital firm with $650 million in assets under management. Since 2006,Kalaari Capital has empowered visionary entrepreneurs building unique solutions that reshape the way Indians live, work, consume and transact. Along with capital, the firm also focuses on a long-term partnership with entrepreneurs to help unlock large value through disruptive innovation.
For more information visit: http://www.kalaari.com/

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Mohit Bansal(23) is B.Tech in Electronics and Communication Engineering from Indian School of Mines, Dhanbad, India. He has interest in business and entrepreneurship and has published couple of research articles. He is also associated with various NGOs. He is with Techaloo when it was just in concept stage. The Techaloo site was not existing even then. Currently Mohit is working with Mu Sigma as a Business Analyst Profile.

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