Big Data underwriting FinTech startup CreditVidya has raised $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 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.
Founded in 2013 by Abhishek Agarwal and Rajiv Raj, Mumbai-based CreditVidya is a technology platform that 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.
It has partnered 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.
“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,” Abhishek Agarwal, Co-Founder and CEO,CreditVidya, said in a statement.
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 claims to have assessed over five million potential borrowers to date and grown the platform to process over 200 gigabytes of unstructured data per day on an average, from a few hundred megabytes last year.
“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.