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AdvaRisk, a fraud prevention and investigation startup, has secured $700,000 (approx ₹5 crore) in a seed round led by Sprout Venture Partners, along with SEA Fund and angels. While, Sharad Bhatia (Ex-Managing Director, Multiples Alternate Asset Management) and Varadarajan Srinivasan (Ex- Deputy Managing Director, Axis Bank), also participated in the round organised by AdvaRisk, in their personal capacity.

AdvaRisk will utilise the funding for product development, and to ramp up sales and business development teams. The startup was founded by Vishal Sharma and Rahul Metkar in 2016. The platform is developing an automated and AI-driven platform for fraud prevention, detection, and recovery in corporate loan portfolio of financial institutions that seeks to transform the way credit is extended, monitored, and recovered.

Vishal Sharma, co-founder, AdvaRisk, said, “The need of the hour is an effective and a proactive credit monitoring solution for preventing frauds that plague our financial system, and adversely affect our economy. We, at AdvaRisk, are developing solutions that enable lenders to prevent future frauds and maximise recovery from non performing assets (NPAs). We are delighted to partner with SVP, SEA Fund, and industry veterans to achieve our vision of making a significant contribution to nation-building by keeping financial frauds at bay.”

The company said it is working towards becoming the most reputed and trusted solution for banks, NBFCs, and corporates in India.

Sprout Venture Partners was founded by Sunil Jain and Sahil Gupta in 2017.

An early stage VC fund Sprout Venture Partners is investing up to $500,000 into product technology companies and consumer brands at seed and Pre-Series A stage.

Sahil Gupta, Managing Partner, Sprout Venture Partners, said, “We have been impressed with AdvaRisk’s initial success by way of signing on major banks and NBFCs. There is a strong need for their products in the financial system considering the rise in NPAs over the last decade, and the archaic processes adopted for recovering the same. The company also addresses fundamental needs of financial institutions (FIs); to improve underwriting measures and to actively monitor portfolio for early identification and minimising future distress.”

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