CrediFiable — a digital lending startup, has received an undisclosed amount of investment from early stage venture capital firm Kae Capital. The funding will be used by the Bengaluru-based company to increase its monthly disbursal to over ₹5 crore.
Commenting on the development, Shubhankar Bhattacharya, Venture Partner at Kae Capital, stated, “From an investor’s perspective, consumer lending represents an interesting dichotomy between a very large market and a highly competitive market. There are many segments in the personal loan market that are untapped and furthermore, in most cases a decision is taken on the applicant’s bureau score.”
He further added that “CrediFiable goes beyond the traditional bureau score and instead looks at many other traditional and non-traditional parameters when assessing the borrower. We feel that this allows them to reclassify borrowers and unlock value based on a ‘truer’ assessment of super-prime and near-prime borrowers.”
Started earlier this year, the startup provides personal loans worth ₹50,000 to ₹5 Lakh to salaried professionals. The startup was founded by Presha Paragash, who previously co-created early stage seed investment firm Sol Primero.
The company runs on a data-driven proprietary underwriting model, catering to borrowers who already have a credit history as well as those who are new to credit.
Credifiable assesses a borrower’s profile holistically on several parameters apart from the usual credit history and credit score. So even if one doesn’t have a credit history – the company can provide them instant personal loan at most competitive interest rate.
Since its inception, CrediFiable claims to have received more than 1,000 applicants and has already teamed up with two lending partners.