Nova Credit bags $45m to supercharge cash flow underwriting in the credit sector

Nova Credit bags $45m to supercharge cash flow underwriting in the credit sector

Nova Credit, the “data analytics firm enabling businesses to achieve sustainable growth by leveraging alternative credit data,” has announced a $45m Series C round.

The capital influx comes courtesy of lead investor Canapi Ventures, with notable contributions from the likes of General Catalyst, Index Ventures, Kleiner Perkins, Y Combinator, Avid Ventures, Geodesic Capital, Harmonic Capital, Radiate Capital, and Socium Ventures (Cox Enterprises). This new wave of investment signifies growing confidence in Nova Credit’s unique blend of products that centre around cash flow underwriting and verification.

In essence, Nova Credit provides a pivotal service for businesses, especially lenders. Its primary product, Cash Atlas, stands out as a leading tool for cash flow underwriting, effectively verifying income and employment data. The firm’s commitment to open finance data pipelines, specialised datasets, and benchmark-setting analytics and compliance tools means its partners can securely grow, all while aligning with their risk appetites.

Furthermore, this financing will bolster Nova Credit’s aspirations to go beyond its renowned cross-border credit reports. The vision is to offer an even broader product spectrum, catering to the intricate demands of today’s lenders.

It’s worth noting that since its Series B round in 2020, Nova Credit’s trajectory has been nothing short of remarkable. The firm has seen a tenfold growth in revenues, clinched partnerships with industry giants such as HSBC, Verizon, and Scotiabank, and successfully ventured into new markets, including Canada, the U.K., the U.A.E., and Singapore. Such successes reflect the company’s expertise in consumer credit data, hinting at even brighter prospects on the horizon.

The potential of open finance and cash flow underwriting is vast. While traditional credit reporting has its limitations, cash flow underwriting, backed by state-of-the-art infrastructure and analytics, offers insights from diverse data sources. This has been Nova Credit’s strength for over seven years, enabling prestigious clients like American Express, HSBC, SoFi, and Scotiabank to grow responsibly.

Nova Credit CEO Misha Esipov said, “Open finance data has been available for decades, but the industry has failed to assemble it into a suite of products that lenders can easily use to improve their customer onboarding and credit workflows.”

Esipov added, “This new capital fortifies our position to continue being a dependable partner to the many banks and lenders we serve and accelerates the pace of innovation in an industry very much in need of change.”

Echoing Esipov’s sentiments, Jeffrey Reitman, General Partner at Canapi Ventures, said, “Over the last few years, Nova Credit has demonstrated time and time again its ability to transform complex credit data challenges into scalable industry solutions that are leveraged by financial partners to expand the aperture of customers they can serve. Nova has assembled the team, tech, and vision to usher in cash flow underwriting at scale. We could not be more excited to double down alongside this roster of investors in supporting Nova.”

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