B2B financial data technology platform CreditVidya has raised $5-million (Rs 32-crore) in Series-B round of funding led by Matrix Partners. The current round of funding also saw participation from existing investor Kalaari Capital. Post this round, the total capital raised by CreditVidya touches about $7 million.

The company plans to use freshly infused funds to add a wide range of fraud and verification services to its existing big data underwriting platform. Not only this, to enable better implementation of the AI-based algorithms, the company is looking to scale up its employee base from 74 to 100 over the next 6-9 months.

Commenting on the development, Vikram Vaidyanathan, MD at Matrix Partners said, “Every bank and NBFC has now embraced technology-based sourcing and underwriting to help bridge the credit gap for first-time borrowers. We believe in CreditVidya's approach to enabling alternate data-based credit underwriting for this lending ecosystem. Their ability to find unique insights by acquiring and processing complex da ta while giving very simple tech solutions sets them apart.”

Founded in 2013 by Abhishek Agarwal and Rajiv Raj, CreditVidya is harnessing the power of big data and advance machine learning techniques to re-imagine, recalibrate and re-build credit scoring. Together, Agarwal and Raj bring a wealth of expertise from their backgrounds in credit risk management, data analytics, nd retail lending. The company’s clients includes banks and nonbanking 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.

Being a financial technology startup headquartered in Mumba, 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.

Abhishek Agarwal, Co-founder, CreditVidya, said “By leveraging the 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. Most of the work we have done so far is in unsecured products such as two wheeler loans, personal loans and consumer durable loans.”

Earlier in December 2016, the technology startup has partnered with Fullerton India to offer alternative data-based authentication and verification services. In June 2016, the company has raised $2 million in Series A funding from Kalaari Capital. Prior to this, CreditVidya has received angel funding from Siddharth Parekh from Paragon Partners and Silicon Valley-based angel investor Munish Mehta.  
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