CreditMantri, an online platform to help borrowers access their credit scores and improve their credit health, has secured US$7.6 million in Series B funding, led by US-based fintech-focussed VC firm Quona Capital.
The Chennai-based startup will use the funds to grow its user base, strengthen the product proposition, and scale the team. “The funds raised will help us deliver a complete suite of products and services to give the Indian consumer better choice and make credit truly possible,” said Co-founder and CEO Ranjit Punja.
Founded by three former Citibank executives Ranjit Punja, R Sudarshan and Gowri Mukherjee, CreditMantri aims to empower consumers to know their credit potential and benefit from this knowledge. On its platform, customers can access their credit scores, learn how to improve their credit health, resolve past issues, reduce current borrowing costs and in the process, discover products best matched to their credit profile.
The platform uses a combination of traditional data such as credit reports, and alternative data such as social media data from mobile phones. Alternate data is particularly important for users who have limited choice and access to credit.
The company claims to have served over 1.4 million users to date, with over 60 per cent of users providing access to over 2,000-plus credit relevant data points. All data is captured or shared only after obtaining explicit consumer consent.
On the supply side, CreditMantri provides financial institutions access to better quality consumer risk profiles besides helping these institutions cut down on expensive credit operations processes and disburse loans faster. Consumer demand data on the platform is used to create custom credit products to address unmet credit needs, for instance, providing unsecured personal credit lines for new to credit consumers or debt consolidation loans for credit challenged consumers.
Rich profiling data results in lenders not having to waste resources on applications which do not meet their credit criteria. Over 40 lenders already use the platform to source consumers, resolve past loan issues and expand into new customer segments.
“The richness in the quality of our credit profiles is validated by the uptake and portfolio performance of the tailor-made loan products launched in partnership with financial institutions. The response from consumers and lenders has far exceeded our expectations and validates that we are solving a real market need,” added Punja.
“Lending in India, and doing so responsibly, is a huge opportunity, and alternative data is the key to unlocking this potential. The digitization of Indian consumers’ financial data is the catalyst that will help build a truly financially inclusive India,” said Ganesh Rengaswamy, Founding Partner at Quona Capital.
Quona Capital is an early growth-stage venture firm focused on financial technology for underserved consumers and businesses in emerging markets. The fund is sponsored by Accion, a global leader in inclusive finance with a rich history of double-bottom line investing, where its impact investments create positive economic and social returns. Quona Capital’s India and Asia investments include Neogrowth Credit, Shubham Housing, IndiaMART, Coins.ph.
Newid Capital is a direct-investment fund focused on financial services and financial technology companies in developing markets.
Elevar Equity invests in transformative and scalable entrepreneurial ventures focused on underserved customers in low income communities. Elevar has invested in over 25 companies in India and Latin America.