Get All Access for $5/mo

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

By Shipra Singh

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Credit Wise Capital

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."

Shipra Singh

Entrepreneur Staff

Freelance Journalist

News and Trends

Dee Piping Goes Public: Announces Initial Public Offering

Dee Development Engineers Limited, commonly known as 'Dee Piping,' has announced its transition into a public limited company.

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

News and Trends

Unifi Capital Launches Two New Funds at GIFT City

Rangoli India Fund and G20 Portfolio are the two new funds launched by Unifi Capital, via its subsidiary UIML in GIFT City, to expand international investment opportunities.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.

Culture

I've Grown a High-Performing Team in Just 2 Years — Here's are 5 Growth Strategies I Learned

A team's strength lies in its people's individual skills and how they synergistically come together.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.