CredResolve Bags $1.1M to Scale AI Debt Recovery Tech, Expand Partnerships

L-R: Balaji Koustubha, G Prashanth Kumar, and Vijay Kumar

Collections platform CredResolve has raised $1.1 million in a seed funding round led by UNLEASH Capital Partners, with participation from CDM Capital.

The Gurugram-based company had previously raised $100K in an angel round from PedalStart, Tujala Goud, and others in February 2024.

The proceeds will be used to expand its partnerships to over 25 financial institutions, enhance its AI-driven technology stack, and strengthen its presence across multiple cities, CredResolve said in a press release.

Co-founded in August 2023 by Balaji Koustubha, G Prashant Kumar, and Vijay Kumar, CredResolve is an AI-powered collections platform dedicated to optimizing the debt resolution process in India. The platform integrates technology with regulatory compliance to help financial institutions improve recovery rates, reduce operational inefficiencies, and enhance borrower experiences.

According to CredResolve, it aims to redefine debt recovery by integrating artificial intelligence with borrower engagement strategies. The company leverages AI to automate recovery workflows, improve borrower communication, and ensure strict compliance with Reserve Bank of India (RBI) regulations. This tech-driven approach enhances recovery rates while reducing operational inefficiencies, addressing a pressing challenge in India’s financial sector.

CredResolve claims to serve over 20 lenders across banks, fintech firms, Non-Banking Financial Companies (NBFCs), and Asset Reconstruction Companies (ARCs). Currently, the startup generates an annual recurring revenue (ARR) of approximately $1 million and intends to triple its revenue in the next year.

It competes with other startups in this space, such as CredGenics, DPDZero, Spocto, Skit.AI, among others.

UNLEASH Capital Partners is a Japanese venture capital firm focused on early-stage fintech and financial services in India, with a strong emphasis on driving financial inclusion. It has backed companies like Ayekart, CredRight, and LetzRyd.

Source: IndianStartupNews