Fintech SaaS Monsoon CreditTech Secures Funding, Launches No-Code Analytics Platform

Gurugram-based fintech SaaS startup Monsoon CreditTech has raised funding in a round led by HDFC Capital, with participation from existing and new investors DMI Alternative Investment Fund – The Sparkle Fund, US-based Top Shelf Equity Partners and angel investors.

With the funding, the startup also launched Thoth, a no-code analytics platform that would enable any user to build machine learning (ML) models in just 4 to 6 hours and analyse their (model) performance on real-world data.

The startup did not disclose the quantum of funding raised in this round, nor the stage at which the funding has been raised. It last secured funding in an angel round in 2017.

Founded in 2016 by Ashwini Anand, Monsoon CreditTech provides ML-powered predictive models to banks, fintech startups, non-banking financial institutions (NBFCs) and housing finance companies (HFCs) for credit and risk use cases such as loan underwriting, risk assessment, cross-selling, customer attrition management, collections optimisation and risk-based pricing.

The startup claims that its tech helps lenders reduce loan delinquencies by up to 30%, raise approvals by up to 25%, reduce customer attrition and improve cross-sell by up to 30%. Monsoon CreditTech claims to have more than 25 customers, including private-sector banks.

The startup’s flagship product, Thoth, allows lenders to develop ML-based analytics models that are easy to consume via the RESTful APIs from Monsoon CreditTech.

Anand, who is also a CFA and the CEO of Monsoon CreditTech, said about the funding, “Our goal is to revolutionise lending using machine learning and artificial intelligence. We are driven to help create a world where every credit-worthy borrower gets access to adequate credit in a manner such that economic value is maximised for lenders, borrowers and society.”

Vipul Roongta, MD of HDFC Capital Advisors, said that the investor partnered with Monsoon CreditTech via HDFC Affordable Real Estate and Technology Program (H@ART) to develop technology and solutions for the real estate ecosystem in India.

Fintech SaaS in India has fast become a lucrative subsector within fintech in general, as banks and NBFCs look to modernise their operations with innovation in the financial services sector, with the likes of Chargebee and KhataBook operating in the segment.

The segment is set to become a $31 Bn market opportunity by 2030, growing at a CAGR of 27% from $4.6 Bn in 2022, according to Inc42’s ‘State of Indian Fintech Report, Q3 2022.’ Fintech SaaS startups in India have raised $868 Mn between 2014 and Q3 2022, according to Inc42 data.