Two-wheeler Fintech Lender Credit Wise Capital Raises $6 Mn Seed Capital from Angel Investors
The NBFC plans to use the fresh capital to grow its dealer network, increase geographical expansion and improve collection technology and underwriting models
Two-wheeler focused lending startup Credit Wise Capital on Tuesday said it has raised USD 6 million in seed funding round.
A clutch of angel investors, including Ajay Goel, alumnus of Stanford Business School and serial investor, Anuj Golecha, founder of Venture Catalysts, Gaurav Gandhi, director at EssGee group, Anup Agarwal, director of Shanti Group and Gaurav Singhvi participated in the funding round.
The Mumbai-headquartered non-banking financial company (NBFC) plans to use the fresh capital to grow its dealer network, increase geographical expansion and improve collection technology and underwriting models.
Founded by Hirak Joshi and Aalesh Avlani, Credit Wise Capital is a two-wheeler financier that deploys mix of traditional lending and new-age fintech data science for lending. The company claims that its tech helps reduce collection costs and with pre-delinquency management by initiating collection effort even before the first presentation.
“Many lenders progressed fast thinking that tech would handle risk on its own. They forgot that technology is as good as the hands that are put into use. Tech is an enabler and not a panacea for all the ailments. Technology cannot convert a delinquent customer into a good one,” said co-founder Joshi.
The company deploys both traditional dealer driven approach and tech-enabled process for loan origination. For the latter, it uses a proprietary tool and a business rule engine that considers over 35 parameters for deciding whether the customer qualifies for a loan or not.
Currently present in Mumbai and Pune, Credit Wise Capital has a network of over 100 dealers and has disbursed loans for about 12,000 two-wheelers in a span of 16 months with an average ticket size of INR 65,000. Currently, it has partnered with AU Small Finance Bank, Hinduja Leyland Finance and Vivriti Capital.
Commenting on the deal, Mayank Shah, Chairman of M J Shah Group said “We were impressed with the systems and processes that they have built. The razor sharp focus on cost reduction to achieve scalability in this business was one of the primary reasons for our investment in Credit Wise Capital.”