Mumbai-based InfoCredit Services Pvt. Ltd, which operates credit scoring platform CreditVidya, has raised $5 million (Rs 32 crore) in a fresh round of funding led by Matrix Partners, the company said in a press release.
The company uses big data analysis for credit underwriting, so that its customers can assess borrowers, and especially “new to credit” borrowers more accurately.
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.”
Launched in 2013, this is CreditVidya’s second round of funding. Existing investor Kalaari Capital also participated in the funding round. While Matrix put in Rs 23.81 crore, Kalaari accounted for the rest.
Between last year and this year, the total amount of funding raised by the company stands at $11 million.
The company 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.
“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 partners with 20 leading lending institutions like Bajaj Finance, Capital First, Fullerton India, Tata Capital, Aditya Birla Finance, ICICI Bank among others.
With the digital footprint in India increasing, it becomes easier for companies like CreditVidya to mine digital data and ensure that deserving individuals get funded.
CreditVidya also offers ‘decision-as-a-service’ with seamless integration into existing client systems. It has assessed more than five million potential borrowers to date and the platform now processes more than 200 gigabytes of unstructured data per day on an average, compared to a few hundred megabytes last year.