Creditexchange snares seed-round
Aditya Kumar’s Creditexchange has developed a hybrid, fully regulatory-compliant model.
Creditexchange, India’s first hybrid digital consumer loans platform and institutional marketplace, has raised an undisclosed amount of funding from Kuber Financial as part of its US$500,000 seed-round.
Creditexchange is building a digital loan origination business which it intends to support with a marketplace for institutional investors through which they can co-invest in portfolios of loans originated by Creditexchange.
The hybrid model allows Creditexchange to overcome the issues faced by existing Indian peer-to-peer and marketplace lending models, mainly with regard to turn-around-times and opaqueness around regulation.
Creditexchange had previously announced a strategic technology partnership at LendIt San Francisco 2016 with LendFoundry, a market-leading platform which is trusted by large online marketplace lenders in North America, to develop a best-in-class platform customized for the Indian market.
Creditexchange uses proprietary risk-assessment models to ascertain creditworthiness of borrowers, including new-to-credit, by analyzing data from integrations with a wide range of sources.
It will open a new market of convenient, flexible, and competitively priced unsecured consumer loans to more than 1 billion prospective borrowers with a wide range of credit profiles and histories.
In addition, Creditexchange will enable institutional investors, both domestic and international, to co-invest in the seasoned loans originated by Creditexchange which can offer attractive double-digit, loss-adjusted yields.
Creditexchange is also in the process of partnering with both banks for the provision of lending capital as well as entering into a strategic partnership with potential distributors. An announcement regarding this is likely to be made in August.
“Faced with opaque regulations, poor technology, and a retail investor base, the Indian market has seen less than US$2 million in originations from more than 30 P2P platforms, combined. To address this gap, Creditexchange has developed a hybrid, fully regulatory-compliant model which will be powered by the LendFoundry platform and will attract institutional capital to unsecured consumer lending,” said Aditya Kumar, Founder & CEO of Creditexchange.
“India is experiencing an enormous amount of change, both in demand for greater access to consumer credit and government regulations. It is a vital part of the larger global FinTech evolution,” said Timothy Li, Founder & CEO of Kuber Financial. fii-news.com
