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HDFC Capital leads funding round for Monsoon CreditTech

The fintech also launched Thoth, a no-code artificial intelligence platform that allows business users to build advanced machine-learning models within six hours

HDFC Capital leads funding round for Monsoon CreditTech
Monsoon CreditTech

Outlook Start-Up Desk

POSTED ON November 10, 2022 5:25 PM

Fintech start-up Monsoon CreditTech has raised funds in a funding round led by HDFC Capital. Existing and new investors also participated in the fundraise including DMI Alternative Investment Fund (The Sparkle Fund), US-based Top Shelf Equity Partners along with angel investors Vellayan Subbiah, managing director at Tube Investments of India and Akash Bhanshali, principal owner of Enam Holdings. 

The fintech's previous investors include independent angel investors like Stride Venture's venture partner Sunil Kalra, director of Vahan Inc Rishi Srivastava and Sequoia Capital and Surge managing director Rajan Anandan.

Regarding the fundraise, Ashwini Anand, founder and chief executive officer of Monsoon CreditTech, said, "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 maximised for lenders, borrowers and society. "

Vipul Roongta, managing director of HDFC Capital Advisors, added, "Monsoon CreditTech's razor-sharp focus on building cutting-edge technology in-house has enabled them to provide solutions to the financial services sector. 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 that has the potential to transform the real estate ecosystem in India".

Sateesh Polisetti, CEO and managing partner of Top Shelf Equity Partners, claimed that the company invested in companies with strong fundamentals that have the potential for hypergrowth and that Monsoon CreditTech fell into this category. "As a firm believer in the power of AI and ML to transform the economy in general and the BFSI space in particular, we have invested in the companies like People.ai, SoFi, ThoughtSpot and RobinHood and we view our investment in Monsoon CreditTech through this lens," he noted. 

Monsoon CreditTech has unveiled Thoth, a proprietary analytics platform that enables business users with no programming or data science knowledge to build ready-to-deploy ML models within six hours. They can also analyse their model's performance on real-world data.

This helps cut down modelling time, while delivering easy-to-consume models via RESTful APIs. Such a system is relevant since it is complex and time-consuming it is to build and deploy models in the context of the banking and financial services sector where lenders have to navigate a complex web of regulations and processes that sometimes have the inadvertent effect of limiting their ability to move fast and innovate quickly. 

Monsoon CreditTech caters to several financial services companies, including banks, non-banking financial companies (NBFCs), housing finance companies and fintech firms. Its machine learning (ML) 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 optimisation and risk-based pricing. 

The fintech claimed that over 25 lenders, including private sector banks, use its models and platforms for a wide range of loan and deposit portfolios.

These model-powered scorecards enable lenders to grow their business and increase profitability by reducing loan delinquencies, increasing loan approvals, reducing turnaround time, improving cross-sell and lowering customer attrition. 

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