Mumbai-based fintech startup CreditVidya has raised $5 Mn in a round led by Matrix Partners India. The round also saw participation from existing investor Kalaari Capital. Last year in June 2016, CreditVidya had raised $2 Mn (INR 13.3 Cr) in Series A round of funding led by Kalaari Capital.
Commenting on the investment, Vikram Vaidyanathan, Managing Director, 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 are excited to partner with the CreditVidya team and are impressed by their approach to enable alternate data-based credit underwriting for this lending ecosystem. Their ability to acquire and process complex data sets very quickly sets them apart.”
Founded in 2013 by Abhishek Agarwal and Rajiv Raj, CreditVidya is a B2B technology platform that uses big data and advanced machine learning techniques to provide credit scores to consumers, banking and financial institutions. The startup specialises in customer profiling, credit risk assessment and fraud detection services
The startup will use the fresh funds to add a range of fraud and verification services to its existing big data underwriting platform. Apart from this, the funds will be used to further improve AI-based credit underwriting algorithms.
Commenting on the investment, Abhishek Agarwal, co-founder and CEO, CreditVidya, said, “Our big data underwriting platform applies advanced machine learning techniques to identify creditworthy customers among the 300 Mn deserving individuals who do not have any credit history. By leveraging 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.”
As per a company statement, CreditVidya has partnered with 20 lending institutions such as Bajaj Finance, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, TVS Credit Services, RBL Bank, IndusInd Bank, InCred and IIFL, etc. The solutions offered by CreditVidya use big data analysis for credit underwriting so that its customers can assess borrowers. The company also offers a service wherein it can integrate into existing client processes and systems. The company claims that it has assessed 5 Mn potential borrowers to-date.
Matrix Partners has a global network of funds investing in the US, China and India with $4 Bn under management. Matrix Partners India is focussed on Indian consumer and enterprise market at the seed, early and early growth stages. Apart from fintech startup CreditVidya, the firm has invested in companies such as Ola, Mswipe, Quikr, Practo, Dailyhunt, Razorpay, etc.
With the recent funding from Matrix Partners India, CreditVidya aims to innovate and add value to lenders. Other players in the fintech space that compete with CreditVidya include Paisabazaar, Rupeepower, and Bankbazaar among others.