Fintech startup Monsoon CreditTech Technologies Pvt. Ltd, on Wednesday announced that it has raised an undisclosed amount in a funding round led by HDFC Capital, along with the participation of several existing and new investors including The Sparkle Fund by DMI Alternative Investment Fund and US-based Top Shelf Equity Partners.
Angel investors such as Vellayan Subbiah and Akash Bhanshali of the Enam Group also participated in the round.
Founded in 2015 by Ashwini Anand, Monsoon CreditTech caters to large financial services companies, including banks, NBFCs (non-banking financial companies), HFCs (housing finance companies) and fintech firms.
“We will continue building proprietary machine-learning technology to take our company forward. We are driven to help create a world where every credit-worthy borrower gets access to adequate credit in a manner such that economic value is maximized for lenders, borrowers and society," said Anand.
Prior to launching Monsoon CreditTech, Anand served as an analyst at Merrill Lynch and also founded a personal finance startup Investopresto in 2009.
Monsoon CreditTech’s machine learning-powered predictive models are used by lenders for various credit and risk use cases such as loan underwriting, risk assessment, cross-selling, customer attrition management, collections optimization and risk-based pricing, the company said in a release.
It claims that the model-powered scorecards enable lenders to grow their business and increase profitability by reducing loan defaults, increasing loan approvals, reducing turnaround time, improving cross-selling and lowering customer attrition.
More than 25 lenders, including several private sector banks, use Monsoon CreditTech’s models and platforms for a wide range of loan and deposit portfolios.
The company has also launched Thoth, which is an analytics platform that enables business users to build advanced and ready-to-deploy machine learning (ML) models. The generated platforms help businesses analyze their model performance on real-world data, the company said.
“HDFC Capital through its HDFC Affordable Real Estate and Technology Program (H@ART) has partnered with Monsoon CreditTech to develop technology and analytics-led solutions,” said Vipul Roongta, managing director of HDFC Capital Advisors.
Prior to this, Monsoon CreditTech raised an undisclosed amount of funding from angel investors Sunil Kalra and Aditya Singh, former senior Microsoft executive Rishi Srivastava, and Sequoia Capital’s Rajan Anandan.
The fintech sector in India has been receiving impressive interest from investors over the past several years. In October, fintech startup Snapmint secured $21 million (around Rs 168 crore) in a mix of debt and equity round led by Northern Arc Capital, with participation from undisclosed high-net-worth individuals who invested through non-convertible debentures.
Also, in September, another lending tech company Light Microfinance raised Rs 196 crore ($24.1 million) in its Series B funding round.