CreditVidya, which calls itself “a data and analytics company offering alternate credit-scoring” services to lending institutions, is targeting a growth of 200% in FY18. In an interview, co-founder and director Rajiv Raj tells Shritama Bose that the start-up would like to have on board the top 10 to 15 lenders in the country by the end of the year. Edited excerpts:
What are the services you offer?
When CreditVidya started four years back, we started helping lenders in underwriting new-to-credit borrowers, using traditional data initially. When I say traditional data, they would include bank statements, bureau information, etc. We automated a lot of processes for these lending institutions so that they are able to reduce the turnaround time and bring efficiency to the existing processes. But, we soon realised the value we were adding was very marginal because in India the biggest challenge is looking at people who don’t have traditional data and that is where we started working with alternate data-based scoring. Now, we look at digital footprints of customers.
One, we do the credit risk assessment at the time of acquisition for customers whom they acquire. The second vertical is email fraud detection, where we trace the work email of the customer and some other solutions to identify the risk, or the fraud, probability of the customer. Also, we have recently launched solutions where we provide fraud and identity score basis the data banks collect traditionally. All of these parameters we would verify with multiple data points and give a score. We also do customer profiling. So, we are a data and analytics company which provides alternate credit scoring.
Which are the lenders you work with?
We work with all the major banks and NBFCs. Our customers on the banking side are ICICI Bank, IDFC Bank, RBL Bank. We are just talking to the largest public sector bank and we’ll have a few more private banks on-board in a month or two. On the NBFCs front, we have Bajaj Finserv, Capital First, Tata Capital, Fullerton Credit, Aditya Birla Financial Services and others. We currently have 14 lenders on board. This year, we would like to double that and have the top 10 to 15 lenders in the country as our customers.
How is your service priced?
It is priced not as a percentage of the loan amount; it’s more at a transactional level. It will depend on how many times they are sourcing the data of customers with us. It would work very similar to a credit bureau.
Are you also responsible for getting them borrowers?
Today the technology works as an API which is embedded in the sourcing app of the lender. They themselves do the sourcing. Of course, we help them acquire or qualify more people. So earlier, if the lender was acquiring 100 customers and approving 50 because they didn’t have any data, now they could acquire 60 or 70 customers. We help lenders improve their approval rates.
What kind of data do you look at to analyse risk?
There are three data points we normally use. One is the device fingerprinting because a majority of the customers have a smartphone. Having said that, this is all permission-bound. The second is the social fingerprinting, where we look at the Facebook, Twitter or Google Plus accounts. Then we also do a bit of browser fingerprinting.
What is the profile of borrowers you assess?
To give you an example, it could be a personal loan or a credit card or a two-wheeler or consumer-durable loan, where the velocity of transactions is very high and lenders would have to approve the customer instantly. The average ticket size for a two-wheeler loan is `35,000, for a consumer-durable loan it would be `25,000 and personal loans may go up to `1 lakh.
What would your capital requirement for FY18 be?
We will not need much beyond the $2 million we raised last year from Kalaari Capital. That will take care of this year, particularly since we are already generating revenue.
What would your growth target for the year be?
We would be looking to grow at more than 200%. In the previous year, we grew 400%.