Data utility platform Crediwatch has raised $3.2 million in a Series A funding round led by Artis Labs, a platform for early stage opportunities from San Francisco based venture capital firm Artis Ventures.
Abstract Ventures, another San Francisco based early stage investor, also participated in the round.
The latest infusion takes the total capital raised so far to $5 million, the Bengaluru-based company said in a statement.
The funds will be used to accelerate research and development (R&D) and commercialisation of the platform.
About 15 percent of over 50 million Indian small businesses (companies, partnerships and proprietorships) have access to formal credit. The debt financing gap of the SME sector is over $1 trillion, the company said.
Crediwatch claims it offers a dynamic trust score derived from millions of data points that are extracted and analysed to help lenders assess borrowers.
“The ecosystem needs a dynamic business information exchange to create transparency and a continuous monitoring of borrowers to weed out bad cases early. Our vision is to reimagine SME credit by measuring trust through verifiable data, insights and good behaviour,” said Meghna Suryakumar, founder and chief executive officer, Crediwatch.
Founded in 2016 by Suryakumar and Sandeep Anandampillai, it is a data insights-as-a-service company.
Crediwatch Information Analytics Private Limited, which operates Crediwatch, had last raised $1.6 million in funding from Modern India Limited, family offices of Vijay Kumar Jatia, Contrarian Vriddhi Fund, Vaibhav Domkundwar’s Better Capital, Mekin Maheshwari, Flipkart and Pithambar Gona, former managing director, Blackstone.
“We have already seen various algorithm-based lending models trying to address the issues pertaining to digital lending, but the lack of a data utility platform for the industry has created a gap. Crediwatch is one of the few businesses that is committed to addressing this gap and we are delighted to offer our support,” said Ramtin Naimi, Abstract Ventures Partner.