Hyderabad-based fin-tech startup CredRight has raised ₹9 crore from seed-stage investor Accion Venture Lab, early stage VC fund YourNest, and a few other prominent angel investors.
With this new injection of capital, CredRight plans to further invest in technology, grow its team, and continue its expansion plans to reach even more unserved & underserved customers. It is aiming to disburse ₹100 Cr in the next 12-15 months.
Neeraj Bansal, Co-founder and CEO, CredRight said,
Chit funds are the most underappreciated financial inclusion story in India. Registered chit funds, well regulated by States & RBI, cater to more than $10 bn credit demand in India, addressing more than 5 mn missing middle of India for over a century. With digital channels and complimentary lending, the industry has the potential to grow many folds and expand the financial inclusion story even further.
Paarul Dudeja, Director of Investments for India, Accion Venture Lab, said,
With tens of millions of India’s MSMEs cut off from formal financing, CredRight’s innovative new model and use of often-overlooked data can help small businesses thrive,” said Michael Schlein, President and CEO of Accion. “By using technology and data, CredRight is redefining how traditional concepts like chit funds can help to amplify financial inclusion.
CredRight is a data driven lending platform that provides credit to underserved micro, small, and medium enterprises (MSMEs). CredRight partners with chit funds across India to acquire customers and use previously untapped chit data, along with other data points, to underwrite a loan for a customer.
By leveraging its proprietary machine learning based credit algorithm, CredRight is able to build significantly better picture of cash flows, ability to repay, and willingness to repay for any applicant, says the company.