CredResolve Raises $1.1 Million for AI-Driven Debt Recovery Solutions

CredResolve, a collections platform powered by artificial intelligence, has successfully raised $1.1 million in a seed funding round that was led by UNLEASH Capital Partners and had participation from CDM Capital. Established in Gurugram, the company had already secured $33.6K in an angel funding round from investors including PedalStart and Tujala Goud back in February 2024.

Funding Purpose and Company Goals

According to official statements from CredResolve, the funding will be utilised to broaden its partnerships to over 25 different financial institutions, advance its AI-driven technology infrastructure, and expand its operations into multiple urban areas.

Overview of CredResolve

CredResolve was co-founded in August 2023 by Balaji Koustubha, G Prashant Kumar, and Vijay Kumar. The goal of this AI-powered collections platform is to enhance the debt resolution process within India. The platform strives to merge advanced technology with regulatory compliance to assist financial institutions in increasing their recovery rates, minimising operational inefficiencies, and improving the experiences of borrowers.

Innovative Approach to Debt Recovery

As stated by CredResolve, it intends to transform debt recovery efforts by combining artificial intelligence with strategies designed to engage borrowers. The company employs AI to automate recovery processes, enhance communication with borrowers, and rigorously adhere to regulations set by the Reserve Bank of India (RBI). This technology-centric strategy not only boosts recovery rates but also mitigates operational inefficiencies, addressing significant challenges facing India’s financial industry.

Current Operations and Future Plans

CredResolve claims to serve more than 20 lenders, which include banks, fintech firms, Non-Banking Financial Companies (NBFCs), and Asset Reconstruction Companies (ARCs). Currently, the startup generates an annual recurring revenue (ARR) of around $1 million and aims to triple this revenue within the following year.

Competitive Landscape

In the competitive landscape, CredResolve faces challenges from other emerging startups in the debt recovery sector, including CredGenics, DPDZero, Spocto, and Skit.AI.

Investors and Vision

UNLEASH Capital Partners is a venture capital firm based in Japan, focusing on early-stage fintech and financial service companies in India, with a strong emphasis on promoting financial inclusion. The firm has previously supported companies like Ayekart, CredRight, and LetzRyd.