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

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.