Credit scoring startup CreditVidya has bagged nearly $5 Mn (Rs 32 crore) through fresh round of funding led by Matrix Partners India. Existing investor Kalaari Capital, which invested approximately $2 million last year, also participated in the round.
As part of the pre-arranged deal, CreditVidya allotted 5,951 Series B compulsorily convertible cumulative preference shares and additional 100 equity shares to the investing companies. This is according to the documents filed with Ministry of Corporate Affairs.
CreditVidya’s parent company will be using the fresh funds to introduce whole new gamut of anti-fraud and verification services under its existing big data underwriting platform. Besides, the Fintech startup plans to use the funds in improving the capabilities of its AI-based credit underwriting algorithms.
CreditVidya was founded in 2013 by Abhishek Aggarwal and Rajiv Raj. The startup’s aim is to correctly asses the credit worthiness of the borrowers – especially the first time borrowers. For credit assessment, It claims to use non-traditional methods like big data analysis and AI enabled services.
Both co-founders believe that startups like CreditVidya are need of the hour for reducing the NPA’s (non-performing assets) that is currently plaguing the entire financial sector. The company claims that its crusade against NPA is today helping several big firms including Bajaj Finance, Capital First, Aditya Birla Finance, Tata Capital, IndusInd Bank, RBL Bank and many more.
The funding of Mumbai based CreditVidya is yet another evidence of investor’s deep faith in Fintech startups. Analysts claim that unprecedented technological advancement in this space has certainly helped Fintech companies in generating interest among the investors.