Delhi-based IndiaLends and Bangalore-based InstaKash are few of the companies that have come up with their own proprietary algorithm that aggregates information from a large number of data sources like the credit bureau, the application form and social networks in order to assess risk and creditworthiness of customers.
According to Raj, this score can be used by lenders, insurance companies, telecom companies, landlords, employers, ecommerce companies, etc.
The information from social media can also be used in addition to the CIBIL and can help identify frauds and defaulters, he said.
Siddharth Parekh, the younger son of banker and HDFC chairman Deepak Parekh and senior partner of PE firm Paragon Partners, along with a couple of high net-worth individuals from Dubai provided seed funding to CreditVidya in November last year.
CreditVidya was launched as a credit advisory firm in 2013 with a mission to educate customers so that they can better monitor and manage the credit aspect of their financial health.
Agarwal told ET that CreditVidya has broken even from the beginning of 2015. “We are in line to hit a million-dollar revenue this year,“ he said.