Chennai-based Kaleidofin uses AI and machine learning algorithms to help lending partners such as banks and microfinance institutions sharpen credit assessments on low-income individuals and small enterprises in India’s informal economy. It uses digital tools such as its “ki score,” which collects over 30 million data points to help lenders underwrite loans to underbanked and unbanked customers.
Kaleidofin has facilitated over $2.7 billion in loans since 2020 to more than 4.7 million borrowers.
The new equity funding round, led with $11 million from Rabo Partnerships, “will help us break even and build a pipeline,” Kaleidofin’s Puneet Gupta told VCCircle.
Financial inclusion
Participating investors in the round include Dell Foundation, Oikocredit, Omidyar NetworkIndia and Flourish Ventures. Kaleidofin is hoping to bring in an additional $10 million of equity this year from investors it has lined up. It is also looking to add $8 million of debt, of which Dell Foundation committed $1 million.
The infusion of capital will help boost lending, particularly to women nano entrepreneurs and agribusinesses and farms in India’s rural areas. Kaleidofin has raised $37 million since 2017.
