CreditVidya a Mumbai based credit scoring platform operted by InfoCredit Services Pvt Ltd has raised a Series A round of funding of $2 Million from Kalaari Capital. The funds will be utilised to improve the technology, expand its headcount and launch new products.
CreditVidya was founded by Abhishek Aggarwal and Rajiv Raj in 2013. It uses data to provide credit scores to consumers who are looking for loans. It earns its fees by charging the lenders for each customers for every credit score requested. Lenders are benefit from low cost of underwriting, high approval rates and more effective product cross-selling.
CreditVidya counts Bajaj Finserv, Fullerton India, Tata Capital, Shriram Housing Finance and IDFC bank among its customers. It collects interest from e-commerce companies, insurance companies and e-wallets.
It is currently operating with 35 employees across its Hyderabad and Mumbai offices. It further aims to add 35 more employees and 1 million consumers by the end of current financial year.
Rajiv Raj Co-founder of CreditVidya said
“The biggest challenge for vendors is when they have no information on customers who are new to credit. 80% of approved loans last year were for people with a CIBIL score of 750 and above. Likewise, 30% of loan rejections were attributed to applicants who never had a CIBIL score.”
He further added
“India’s demographic profile consists primarily of people without a credit history. CreditVidya’s solutions enable lenders to increase profitability by more accurately assessing the credit risk of these new-to-credit customers.”
Abhishek Agarwal, chief executive, CreditVidya said
“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.”
TranServ a digital payment firm raised its Series C round of funding of $15 Million led by SPICE, IDFC and Micromax Informatics Ltd. Deal4Loans an online lending marketplace raised an undisclosed amount of funding from bunch of investors.