CreditexchangeTM Receives Investment Boosts from Kuber FinancialTM

  • Investment
  • 15.07.2016 02:00 pm

Creditexchange, India’s first hybrid digital consumer loans platform and institutional marketplace, has announced that it has raised an undisclosed amount of funding from Kuber Financial as part of its $500,000 seed round.

Creditexchange is building a digital loan origination business which it intends to support with a marketplace for institutional investors through which they can co-invest in portfolios of loans originated by Creditexchange. The hybrid model allows Creditexchange to overcome the issues faced by existing Indian peer-to-peer and marketplace lending models, mainly with regard to turn-around-times and opaqueness around regulation.

Creditexchange had previously announced a strategic technology partnership at LendIt San Francisco 2016 with LendFoundry, a market-leading platform which is trusted by large online marketplace lenders in North America, to develop a best-in-class platform customized for the Indian market.

Creditexchange uses proprietary risk-assessment models to ascertain creditworthiness of borrowers, including new-to-credit, by analyzing data from integrations with a wide range of sources. It will open a new market of convenient, flexible, and competitively priced unsecured consumer loans to more than 1 billion prospective borrowers with a wide range of credit profiles and histories. In addition, Creditexchange will enable institutional investors, both domestic and international, to co-invest in the seasoned loans originated by Creditexchange which can offer attractive double-digit, loss-adjusted yields.

Creditexchange is also in the process of partnering with both banks for the provision of lending capital as well as entering into a strategic partnership with potential distributors. An announcement regarding this is likely to be made in August.

“Faced with opaque regulations, poor technology, and a retail investor base, the Indian market has seen less than $2 million in originations from more than 30 P2P platforms, combined. To address this gap, Creditexchange has developed a hybrid, fully regulatory-compliant model which will be powered by the LendFoundry platform and will attract institutional capital to unsecured consumer lending,” said Aditya Kumar, Founder & CEO of Creditexchange.

“The team behind Kuber Financial has experience at some of the most successful marketplace lending companies globally. Their experience will help Creditexchange’s growth trajectory exponentially."

“India is experiencing an enormous amount of change, both in demand for greater access to consumer credit and government regulations. It is a vital part of the larger global FinTech evolution. It is extremely exciting to work with Aditya Kumar, CEO of Creditexchange and an extremely professional and experienced team he’s put together,” said Timothy Li, Founder & CEO of Kuber Financial. “As part of our overall FinTech venture strategy, I am extremely proud of our team at Kuber Financial to make this investment possible. We are looking for a long and prosperous relationship with Creditexchange.”

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