Creating Alternative Data-Based Services For Lenders & NBFCs

Fintech & Financial Services Startup50

In Startup50 2017: Kalaari Capital- backed CreditVidya, a financial technology start-up, made it to Startup50 2017 for assessing over 5 million loan applicants and for turning cash flow positive in its second year of operations.  

Founder: Abhishek Agarwal and Rajiv Raj

Founded in May 2013, CreditVidya is a financial technology start-up that offers alternative data-based services to lenders and NBFCs. The company uses a combination of traditional and alternate data and its proprietary algorithm utilizes over 10,000 data points, including behavioural, social (social media, ecommerce), transactional (utility/telecom bills) to provide lenders with credit risk assessment, fraud detection and customer profiling.

While most fintech companies in this space are focused on lending as well as Credit Risk assessment, CreditVidya solely focuses on Credit Risk Assessment and does not lend on their own books. The company targets those who are ‘credit invisible’; meaning, those individuals who have the ability and the intent to pay (back a loan), but have not been formally recognized by a credit bureau such as CIBIL. While these numbers range around 350 million, the target for CreditVidya is more specifically the Indian youth who fall within an income bracket of Rs. 2 lakh to Rs. 9 lakh. This is about 20 per cent of the Indian population  

Talk about money

CreditVidya was cash flow positive in the second year of operations itself.  With almost 67 employees, the company has completed assessment of 5 million loan applicants. It has received US $ 2 million from Kalaari Capital and its revenue has grown by 200 per cent in FY 16-17.

What’s in store?

The company aims to score 100 million customers in five years by further expanding its credit rating services to other verticals such as insurance, e-wallet and ecommerce, to name a few. When you apply for a job or insurance in the US, having a credit score is mandatory. In India, given the pace at which the country is adapting to newer technologies, there will soon be a time when the demand for alternate data will increase and credit score will become a mandate for many verticals. The company is looking at capitalizing on this opportunity. 


Quick Facts:

  • Financial Technology startup that offers alternative data-based services to lenders and NBFCs

Box:

  • 10,000 : Number of data points utilised by the proprietary algorithm to provide lenders with credit risk assessment, fraud detection and customer profiling
  • 200 per cent: Growth in revenue in FY17
  • 67 : Number of employees
  • 5 million : Assessment of loan applicants completed
  • US $ 2 million : Received from Kalaari Capital

Poornima Kavlekar has been associated with The Smart CEO since the time of launch and is the Consulting Editor of the magazine. She has been writing for almost 20 years on a cross section of topics including stocks and personal finance and now, on entrepreneurship and growth enterprises. She is a trained Yoga Teacher, an avid endurance Cyclist and a Veena player.

Related Posts