ImpactAlpha, April 9 – A growing number of fintech ventures are using new metrics and creative algorithms to help small businesses and consumers access and build credit. Delhi-based Namaste Credit assesses India’s small businesses and matches them with one or more institutional lenders on their 30-strong lender marketplace. “SME credit is seriously constrained due to lack of reach and relevant data to assess credit worthiness of borrowers,” says Anup Gupta of Nexus Venture Partners, which led Namaste Credit’s Series A round.
- Access to finance…In India, millions of small businesses account for about 40% of GDP. Only 10% have access to formal finance channels.
- Large market….Meeting their lending needs is at least a $15 billion market opportunity, according to Indian investment bank MAPE Advisory Group.