CredoLab raises $7 million in Series A funding

The CredoLab Team

In addition to GBG, the round drew the participation of Walden International, an existing investor, and new investors like Access VC.

CredoLab develops bank-grade digital scorecards for banks, lenders, e-commerce, travel, ride-hailing, e-wallets, insurance, and retail companies, or essentially for any business that needs to make better credit decisions.

CredoLab uses the best source of privacy-consented and permissioned data: smartphone and web metadata to help its clients to expand the market share and decrease their cost of risk in real time. Since its inception in 2016, CredoLab has powered almost $2 billion in loans issued by 70+ clients across 20+ countries.

Peter Barcak, CEO and founder of CredoLab

"Despite the obvious slowdown caused by COVID-19, we have already seen a significant shift from physical originations to digital ones and an increased appetite in using alternative sources of data,” said Peter Barcak, CEO and founder of CredoLab.

“CredoLab has continued to provide a stable behavioural score that has kept its predictive power even in the presence of payment holidays when lenders can't rely on credit bureau scores. We have become an essential part of the recovery strategies of our clients as they restart lending in the post-COVID-19 environment in a risk-controlled way.”

According to Chris Clark, GBG chief executive, the company’s fraud and compliance solution allows financial institutions to onboard and transact with their customers quickly, safely, and securely.

“We have experienced first-hand CredoLab’s capabilities from our ongoing commercial partnership. The company’s AI-based proprietary technology will complement our existing offering but also provide critical behavioural risk reference data from good customers that are financially excluded," Clark said.

“We are ecstatic to be associated with GBG, Walden International, and Access VC who have shown great confidence in our team, our product, and our cause by backing us in our latest round of funding,” Barcak said.

With the objective of democratising credit scoring, CredoLab plans to use this investment to further enhance its product features and expand the understanding of customers’ digital risk DNA.

In addition to strengthening its alternative credit core scoring algorithm, CredoScore, the Singapore-based fintech company, will also push the adoption of its solutions in other industries at the intersection with financial services and help them grow faster post-pandemic.

CredoLab will focus on consolidating its leadership in Southeast Asia and expanding its market reach in key countries across Asia, Latin America, and Africa.

Elaborating further, Peter Barcak said, “Last year, we had some great names come on board in Brazil, India, South Africa, and Nigeria. In the next 12 months, with more resources at hand, we intend to expand our sales network and further target non-banking financial institutions.”