Credit Wise Capital (CWC), a tech-enabled consumer finance NBFC, announced that it has raised $6 million seed funding led by Chairman of MJ Shah Group Mayank Shah, according to YourStory report.
Other investors that participated in the funding round include Ajay Goel, Founder of Venture Catalysts, Anuj Golecha, Director of EssGee Group, Gaurav Gandhi, Director of Shanti Group Anup Agarwal, and Gaurav Singhvi.
CWC will be using the capital to grow its dealer network, geographically expand, and improve its collection technology and underwriting models, the Company said.
Commenting on the investment, Mayank Shah said, “The razor-sharp focus on cost reduction to achieve scalability in this business was one of the primary reasons for our investment in Credit Wise Capital.”
Founded by Hirak Joshi and Aalesh Avlani, CWC aims to disrupt the two-wheeler lending ecosystem by combining traditional lending with fintech data science.
Co-founder Hirak Joshi said, “Many lenders progressed fast thinking that tech would handle risk on its own. They forgot that technology is as good as the hands that are put into use. Tech is an enabler and not a panacea for all the ailments. Technology cannot convert a delinquent customer into a good one.”
CWC has so far disbursed around 12,000 two-wheelers in the last 16 months, with average ticket size of Rs 65,000. The company is serviceable in Mumbai and Pune and has a dealer network of over 100.
CWC has onboarded debt partners including AU Small Finance Bank, Hinduja Leyland Finance, and Vivriti Capital.
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