Mumbai-based CreditVidya, a financial technology startup that leverages non-traditional data sources to provide credit scores to individuals has raised $5 million in its series-B round of funding from Matrix Partners.
The funding also saw participation from its existing investor, Kalaari Capital who had invested $2 million in the company in 2016.
With this latest infusion, the total capital raised by CreditVidya touches about $7 million.
As per ROC filings with Ministry of Corporate Affairs, InfoCredit Services Pvt. Ltd which operates Creditvidya issued 5,951 Series B compulsorily convertible cumulative preference shares and 100 equity shares to the investors.
As per the company’s statement, the proceeds will be used to add a wide range of anti-fraud and verification services to its existing big data underwriting platform. The firm will also work towards its AI-based credit underwriting algorithms that use over 10,000 data points for risk assessment and it is looking to scale up its employee base from 74 to 100 over the next 6-9 months.
“By leveraging the India stack, we have managed to reduce the cost of underwriting for a smallticket loan by over 50% and reduced the turnaround time for loan disbursal from several days to under 30 minutes. Most of the work we have done so far is in unsecured products such as twowheeler loans, personal loans and consumer durable loans,” said Abhishek Agarwal, cofounder, CreditVidya, reports Mint
Launched in 2013, by Abhishek Agarwal and Rajiv Raj, CreditVidya uses non-traditional data sources to help lenders with information on credit scores for first-time borrowers. The company uses data from a host of sources including pending payments or categories of purchases, social networks and transactional data such as mobile re charges or online retail spends to arrive at credit scores.
The company works with over 20 lending institutions including Bajaj Finance, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, IndusInd Bank amongst others.