Credit risk management platform CredoLab has closed its oversubscribed pre-Series A funding round on double its initial target. ?
The investment was led by Fintonia Group, with several other institutional investors also taking part including Reliance Modal Ventura.
Singapore-based CredoLab was founded in 2016 and uses its application to extract a digital footprint from the user mobile phone and then compiles the data into a digital credit scorecard.
This platform makes credit more available to those with no or limited banking history, while also helping lenders to reduce the cost of risk and increase approval rates.
The company client base has risen to over ten financial institutions and anticipates?to double this within the next six months. CredoLab is expected to create over a million credit scores by the end of the year and become profitable within its first nine months since launch.
CredoLab co-founder and CEO Peter Barcak said, ?The strong investor interest from this fundraising round is a market validation of our product and our growth vision. By addressing the huge market demand for financing in emerging markets, CredoLab is seizing a leadership position in advancing credit access and filling the void created by the banking infrastructure and logistical challenges in the developing world.
?With this strong support from our investors, we will further develop revolutionary financial technology products and solutions that could further expand the reach of our client institutions to serve the underbanked population.p>
As part of the transaction, Fintonia chairman and CEO Adrian Chng has joined the company board of directors.
This funding round brings the total capital raised by the firm to over $1m.
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