The company partners with chit funds, which are similar to Rotating Savings and Credit Association (ROSCAs) in the United States but use a reverse auction to distribute pooled funds across India to acquire customers and use previously untapped chit data, along with other data points, to underwrite a loan for a customer.
“CredRight plans to further invest in technology, grow its team, and continue its expansion plans to reach even more unserved and underserved customers,” said Neeraj Bansal, co-founder and CEO of CredRight.
CredRight has partnered with chit funds companies that allow access to MSMEs and their entire past credit history related to chit fund payments and defaults data. It is a data-driven lending platform that provides credit to underserved micro, small, and medium enterprises (MSMEs).
“We find CredRight has gained access to hitherto untapped alternate credit data-sets to build and roll out a product for ‘Bharat’,” said managing director and fund manager, YourNest Venture Capital, Sunil Goyal.