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Tech-enabled consumer finance NBFC, Credit Wise Capital (CWC) has raised $6 million in its seed round. The investment round was led by Chairman of MJ Shah Group Mayank Shah.

The seed funding round also saw a participation from serial investor Ajay Goel, Founder of Venture Catalysts Anuj Golecha, Director of EssGee Group Gaurav Gandhi, Director of Shanti Group Anup Agarwal, and Gaurav Singhvi.

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.”

Credit Wise Capital (CWC) was founded by Hirak Joshi and Aalesh Avlani. It aims to disrupt the two-wheeler lending ecosystem by combining traditional lending with fintech data science. Currently, present in Mumbai and Pune, CWC has an active dealer network with over 100 dealers and has disbursed 12,000 two-wheelers in a span of 16 months with an average ticket size of 65,000. The company has been able to onboard debt partners like AU Small Finance Bank, Hinduja Leyland Finance and Vivriti Capital.

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 will be using the freshly raised funds to grow its dealer network, geographically expand, and improve its collection technology and underwriting models.


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