CreditVidya, a financial technology startup that harnesses the power of non-traditional data to provide credit scores to millions of unscored Indians, has raised $2 million in Series A funding from Kalaari Capital. The investment will support CreditVidya’s plans to continuously advance their technology platform and launch additional products that help lenders approve more customers, minimize fraud rates and accelerate verification processes of potential customers.

Speaking about the investment, Abhishek Agarwal, Co-founder and CEO of CreditVidya said, “Non-traditional internet and mobile data sources provide a rich source of social, behavioural and transactional data which when combined with advanced analytics is fuelling a new wave of credit risk assessment. Our big data platform leverages over 10,000+ 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. The goal to drive financial inclusion by enabling access to credit through our technology platform is what motivates us!”

“Currently, credit bureaus rely heavily on traditional data streams such as details of repayment of loans and credit cards to generate credit scores. 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. We are thrilled to benefit from Kalaari’s expertise in scaling technology businesses to bring fair and transparent credit to millions of Indians.”  added, Rajiv Raj, Co-founder and Director of the firm.

Together, Abhishek and Rajiv bring a wealth of expertise from their backgrounds in credit risk management, data analytics and retail lending. The company’s current clientele includes banks and non-banking financial institutions such as Fullerton India, Bajaj Finserv, IDFC Bank, Tata Capital and Shriram Housing Finance. It has also garnered interest from other verticals such as insurance companies, e-commerce companies and e-wallets.

According to Bala Srinivasa, ‎Partner at Kalaari Capital, “Credit scoring is a major bottleneck in India inhibiting social and economic growth.  Credit Vidya has built unique technology that enables lenders to assess credit risk of 800M+ Indians not covered by traditional credit scoring.  We are excited to partner with CreditVidya in their mission to reimagine credit scoring in India.”

CreditVidya has previously received angel funding from Siddharth Parekh from Paragon Partners and Silicon Valley-based angel investor Munish Mehta.

CreditVidya, is a financial technology startup headquartered in Mumbai. Founded in 2013, CreditVidya’s technology platform uses non-traditional data sources to provide credit scores to hundreds of millions of Indian customers.  The technology platform helps lenders accurately assess risk of new-to-credit and thin file customers.  Lenders benefit from increased approval rates, lower cost of underwriting and more effective product cross-selling and upselling.

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