3 year old Mumbai based startup gets $2 million in funding from Kalaari capital in their Series A funding . Additionally they also received 150K USD from Paragon Partners Managing Partner, Siddharth Parekh, and from a clutch of employees.
“Credit scoring is a major bottleneck in India inhibiting social and economic growth. CreditVidya has built unique technology that enables lenders to assess credit risk of 800 million-plus Indians not covered by traditional credit scoring,” said Bala Srinivas , partner at Kalaari Capital.
This credit score advisory platform is founded by by UCLA and London Business School alum Agarwal and Rajiv Raj, who was previously with a number of leading banking and financial institutions, CreditVidya uses big data and advanced machine learning techniques to provide credit scores to consumers, banking and financial institutions.
“Our big data platform leverages over 10,000-plus such unique digital data points to assess the creditworthiness of a potential borrower. We work very closely with our lending partners to develop customized scorecards for their product offering so that they can approve more creditworthy customers,” said Abhishek Agarwal, chief executive, CreditVidya.
The startup typically earns its fee by charging lenders for every credit score requested by them. CreditVidya counts financial institutions, such as, Fullerton India, Bajaj Finserv BSE -0.85 %, IDFC Bank, Tata Capital and Shriram Housing Finance, among its clientele.
These proceedings will be used to improve their technology platform, increase headcount, develop new products and focus more on their data scientist team. This startup is part of the big buzz word, “Big Data Analytics”, which is used to will determine credit score of people and institutions.
This is a new concept to India unlike the west. Considering Indian citizens without credit history, this will be a need platform by lenders. There are other fintech companies in this space like Delhi-based IndiaLends , which has been backed by DSG Consumer Partners.