Digital lender Kreditech receives first-of-a-kind RBI license to operate as NBFC

Germany-based digital lending company Kreditech has been granted a first-of-a-kind license by the Reserve Bank of India (RBI) to operate as Non-Banking Financial Company (NBFC) in India.

Ashish Kohli MD & CEO, India operations. “With this license, we enter a new era of lending in India. The certification has taken into account our robust systems, technology and customer grievance redressal mechanism and helps us stand out from our competitors,”

He further added, “We would also like to sincerely thank the regulators for providing detailed policy for online lenders like us, proving customers in India with a secure framework for online lending and ensuring only serious and reliable players will prevail in the market.”

Founded by Alexander Graubner-Müller and Sebastian Diemer in 2012, Kreditech leverages non-traditional data sources and machine learning to provide easy credit to the underbanked. The fintech startup aims to revolutionise the consumer credit market by assessing the creditworthiness of individuals solely based on alternative data.

Equipped with the RBI license, the digital lender is looking to offer highly personalised direct-to-consumer loans as well as its Lending-as-a-service (LAAS) solution for vendors, enabling its partners to offer customized credit products to their customers, in India.

The digital lending company claims that its proprietary credit scoring technology is capable of accessing the creditworthiness of an applicant with seconds and higher precision, compared to tradition credit-bureau based systems.

Kreditech is looking to target an AUM base of ₹4,000-5,000 crores over a period of 3 to 5 years. According to the fintech company, India is the most promising fintech market, with a potential of around $1 billion in the next five years.

Apart from India, the company is operational across Poland, Russia and Spain.

Kreditech last raised €110 million from global payments company PayU in a funding round in May 2017. The fintech company counts J.C. Flowers, Värde Partners, Blumberg Capital, HPE, World Bank’s IFC, Thiel Capital and Rakuten, among its investors.

Other digital lending startups in the Indian startup ecosystem include InCred, LenDenClub, Monexo Fintech, Lendingkart, and Shubh Loans, among many others.

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