AbleCredit, a pioneering fintech startup leveraging artificial intelligence (AI) to transform credit underwriting, has successfully secured $1.25 million (INR 10 crore) in a seed funding round. This investment, led by Merak Ventures, a prominent early-stage venture capital firm, empowers AbleCredit to scale its AI operations and fuel its mission of bridging the credit gap in emerging economies.
Addressing the Credit Gap with AI Innovation
India grapples with a staggering credit gap of INR 25 trillion, primarily due to a scarcity of qualified underwriters and high underwriting costs. AbleCredit tackles this challenge head-on by harnessing the transformative power of AI. Their cutting-edge AI products and solutions aim to empower lenders in emerging nations to make informed credit decisions with greater efficiency and speed.
Generative AI Models for Credit Assessment
AbleCredit is at the forefront of developing generative AI models equipped with voice, vision, and language capabilities. These models function as AI assistants for credit teams, meticulously generating comprehensive credit reports on a case-by-case basis while adhering to established credit policies and guidelines. This innovative approach empowers lenders to analyze traditionally overlooked sectors, fostering financial inclusion.
Unlocking the Potential of the Informal Sector
AbleCredit’s unique voice and vision capabilities empower its AI models to effectively serve the informal sector, a vast market segment often characterized by a lack of traditional credit data. This inclusivity caters to the needs of “new-to-credit” customers, propelling financial empowerment across a wider demographic.
Measurable Results: Efficiency and Speed
AbleCredit’s AI-driven approach has yielded significant results. Their innovative solutions have demonstrably increased underwriting speed by over 20 times, streamlining loan disbursement processes. Additionally, they have achieved a 12 times improvement in the throughput of credit processes, leading to a substantial reduction in underwriting costs.
Investment Fuels Growth and Expansion
The seed funding round led by Merak Ventures serves as a significant milestone for AbleCredit. This investment will empower them to scale their AI operations, accelerating business growth and expansion plans.
Merak Ventures Backs a Promising Future
Manu Rikhye, Partner at Merak Ventures, expressed his enthusiasm for AbleCredit’s transformative potential: “Credit underwriting has historically been a time-consuming bottleneck in loan disbursement. Recent advancements in AI offer a unique opportunity for significant change. AbleCredit’s innovative tools promise unprecedented speed and efficiency, empowering lenders to make informed decisions faster and more effectively. At Merak Ventures, we are committed to supporting impactful solutions that address real-world challenges, and AbleCredit’s approach perfectly embodies this philosophy.”
Bridging the Economic Divide Through AI
Utkarsh Apoorva, Co-founder and CEO of AbleCredit, commented on the significance of the funding and their mission: Emerging economies face a critical credit gap, particularly within the MSME sector. This disparity hinders economic growth and creates unemployment. At AbleCredit, our AI system leverages its voice, vision, and language capabilities to extend credit analysis to traditionally overlooked sectors. This approach allows us to serve a diverse range of industries by analyzing alternative data sources, ultimately generating comprehensive credit assessments. We are thrilled to announce this new funding round and welcome Merak Ventures as a partner. Their support strengthens our resolve to bridge economic disparities and enhance financial well-being.
Expanding Reach and Processing Power
AbleCredit is currently focused on serving both secured and unsecured loan segments. Their ambitious vision extends beyond the present, aiming to provide small businesses with access to loans secured in under a minute. Furthermore, they have set a target of processing a remarkable one million loan applications within the next twelve months.
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