Mumbai, September 07, 2017: Fin-tech company CreditVidya, the leader in big data underwriting, has raised USD 5 million, led by Matrix Partners India. The round also saw participation from existing investor Kalaari Capital, who led its previous round in 2016.
CreditVidya partners with 20 leading lending institutions such as Bajaj Finance, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, TVS Credit Services, ICICI Bank, IndusInd Bank, InCred and IIFL, amongst others. Credit Vidya’s solution uses big data analysis for credit underwriting, so that its customers can assess borrowers, and especially “new to credit” borrowers more accurately. It also offers ‘decision-as-a-service’ with seamless integration into existing client processes and systems. It has assessed over five million potential borrowers to date and the platform has grown to process over 200 gigabytes of unstructured data per day on an average, from a few hundred megabytes last year.
It will use the fresh funding to add a wide range of fraud and verification services to its existing big data underwriting platform. The funds will also be used to further improve AI-based credit underwriting algorithms that use over 10,000 data points for risk assessment.
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 million 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. We are honored that Matrix Partners and Kalaari Capital have shown faith in our vision of redefining credit risk assessment in India.”
“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. We think India’s fin-tech story is just getting started and will continue to invest in this space”, said Vikram Vaidyanathan, Managing Director, Matrix Partners.
CreditVidya, is a financial technology firm headquartered in Mumbai. Founded in 2013, its technology platform uses traditional as well as alternative data sources to provide Customer Profiling, Credit Risk Assessment and Fraud Detection services. Its products and offerings help lenders accurately assess risk of new-to-credit and thin file customers. Lenders benefit from increased approval rates, lower cost of underwriting and more effective product cross-selling and upselling. Their clientele list includes the likes of Bajaj Finance Ltd., Capital First, Fullerton India, Tata Capital, Aditya Birla Finance Ltd., ICICI Bank, IndusInd Bank, TVS Credit Services, InCred and IIFL, amongst others. For more information visit: http://www.creditvidya.com
About Matrix Partners India:
Matrix Partners India is an investment firm with INR 4,500 crore under management. The firm invests in companies targeting the Indian consumer and enterprise market at the seed, early and early growth stages. The firm has invested in several market leading companies such as Ola (local transportation), Mswipe (mobile POS), Quikr (online classifieds), Practo (digital health platform), Dailyhunt (mobile local language platform), Five Star Finance (SME lending), Limeroad (mobile social commerce marketplace), Razorpay (payments), Treebo (digital hotel chain) and OfBusiness (B2B marketplace) among others. Matrix Partners has a global network of funds investing in the US, China and India with US $4 billion under management. Further information is available at www.matrixpartners.in