YourNest & Accion Jointly Invests 9 Crore in CredRight
CredRight, a data driven lending platform that provides credit to unserved & underserved MSMEs, raises 9 crore pre-Series A funding from YourNest, an early stage venture capital fund, and Accion Venture Lab, a seed-stage investor. Partnering with chit funds, CredRight uses a reverse auction method to distribute pooled funds across India to acquire customers and use the previously untapped chit data. RBI registered chit funds in India have more than five million subscribers and half of them being MSME subscribers. CredRight builds significantly better picture of cash flows, ability to repay for any applicant and it can easily approve loans within 24 hours and disburse funds within three business days, a much needed platform for the chit fund sect.
Neeraj Bansal, Co-Founder & CEO, CredRight, says, “Chit funds are the most underappreciated financial inclusion story in India. Registered chit funds, well regulated by States & RBI, cater to more than $10 billion credit demand in India, addressing more than five million 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.”
Headquartered in Hyderabad, CredRight is a new age digital lending company. It commits to make the process of availing loans convenient, transparent and on time. With an intention of helping small businesses funded in India, CredRight was backed by the strong chit fund industry & their partnership.
Sunil Goyal, Managing Director & Fund Manager, YourNest Venture Capital, says, “For decades chits are a trusted source of savings and credit in India. CredRight team has intelligently built an algorithm to use the reliable data on the members available with the chit funds. This strong digital platform allows CredRight to have a lower operational cost, conduct multivariate analysis and a continuously evolve its credit model.” YourNest Angel Fund is a SEBI-registered early stage venture capital fund which invests in businesses which uses ideas enabled by path-breaking use of technology. Founded in 2011, their main focus is on building an enterprise for successful strategic exit and identifying first generation entrepreneurial teams and liberates them to fulfill their dream.
Founded in the same year, Accion is an investment initiative that delivers startups with seed capital and support. Aims at the early-stage startups which traditionally lack access to capital and assistance and provides them the required flexible financial and non-financial support.
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