CreditVidya, a B2B fin-tech platform that helps lenders make critical decisions based on credit scores assigned through data, has raised a new funding round worth around ₹32 crore ($5 million).
This marks the second round of funding for the fin-tech startup. The funding round was led by Matrix Partners, along with the participation of existing investor Kalaari Capital.
The startup will use the fund to add a wide range of fraud verification services and risk assessment means to its existing big data underwriting platform.
It will also spend money to further improve AI-based algorithms that use over 10,000 data points for risk assessment, in order to improve technology.
Vikram Vaidyanathan, managing director, Matrix Partners, said,
We are very excited to partner with Abhishek and his team in their journey to building a pillar of the digital credit ecosystem. We think India’s fin-tech story is just getting started and will continue to invest in this sector.
Founded in 2013, CreditVidya uses non-traditional data sources such as recharge pattern, utility bill payments, e-commerce purchase behaviour, etc. to provide a credit score for individuals who do not have a traditional credit score.
The company claims to have five million unique customers and has partnered with more than 20 leading financial institutions in India in the last two years.
It offers decision as a service with support for integration with existing client systems. It has tie-ups with several financial institutions such as Bajaj Finserv, Fullerton India, Tata Capital, Aditya Birla Finance, IndusInd Bank, Shriram Housing Finance, among others.
Abhishek Agarwal, co-founder of the company, says that by leveraging India Stack they have managed to reduce the cost of underwriting small ticket loans by more than 50 percent, and the turnaround time from several days to under 30 minutes.