Indian fintech unicorn Cred is set to acquire “lending-as-a-service” start-up CreditVidya for an undisclosed sum, subject to regulatory approvals.
Cred to acquire CreditVidya for an undisclosed sum
The acquisition will be a mix of cash and stock, Cred says, without divulging any further details. Following the acquisition, Cred and CreditVidya will continue to operate independently.
Abhishek Agarwal, co-founder and CEO of CreditVidya, says the acquisition will aid the firm in the next phase of its growth, with a focus on building its brand and scaling distribution.
Based in Hyderabad, India, CreditVidya was founded in 2012. The alternative credit scoring platform leverages artificial intelligence (AI) and machine learning via APIs to help businesses facilitate access to institutional credit for the underserved.
CreditVidya says that with 10,000 data points, its credit underwriting model is 2x more powerful than traditional bureau scores.
It also claims to help banks and non-bank financial companies (NBFCs) underwrite 15% more individuals and cut decision-making times from “several days to under five minutes”, reducing costs and increasing profitability.
“Expanding access to credit is a key driver for financial progress,” says Kunal Shah, founder of Cred. “CreditVidya’s patented tech stack uncovers signals of trust among underserved cohorts.”
Earlier in the year, Cred announced that it intends to invest $10 million in peer-to-peer lending platform LiquiLoans for a minority stake. Last year, it acquired business expense management platform Happay.
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- Source: https://www.fintechfutures.com/2022/12/indias-cred-set-to-acquire-saas-start-up-creditvidya/
