GoodScore Raises $13 Million to Transform Credit Management in India
Bengaluru-based fintech startup GoodScore has successfully raised $13 million in its latest funding round. The round was led by Peak XV Partners, with notable participation from Stellaris Venture Partners and Capital Season.
About GoodScore
Founded in 2023 by Sanchit Bansal, GoodScore aims to help users monitor and enhance their credit scores through personalized insights driven by artificial intelligence (AI) and effective reimbursement tracking tools. The startup’s mission is to simplify credit management for its users.
Funding Utilization Plans
The newly acquired funds will be utilized to bolster GoodScore’s AI-driven advisory services, expand its technology, product, and operations teams, and improve its credit marketplace that connects borrowers and lenders directly. This development is crucial as it reflects the growing demand for sophisticated credit management solutions in India.
The Landscape of Credit in India
India’s thriving fintech ecosystem has undeniably made accessing credit easier. However, this surge has also resulted in a substantial increase in debt accumulation and repayment stress among consumers. Currently, fintech lenders are responsible for nearly three-quarters of personal loans granted, indicating a significant shift in the lending landscape.
Challenges in the Personal Loan Market
By March 2025, the percentage of personal loans overdue for more than 90 days reached 3.6 percent. Additionally, credit card payments overdue for 91 to 360 days surged by 44 percent year-on-year, amounting to nearly Rs 34,000 crore. The Reserve Bank of India, alarmed by this trend, has strengthened regulations for the sector, mandating stricter credit standards and increased risk weights for unsecured lending.
GoodScore’s Innovative Solutions
To address the rising challenges of unsecured lending, GoodScore offers users an integrated platform for tracking credit scores, managing repayments, and accessing educational resources for responsible borrowing. By aggregating credit bureau data and transaction details, the platform provides real-time insights into users’ financial obligations, empowering them to make informed decisions.
Empowering Borrowers Across India
GoodScore has already made significant strides, expanding to reach millions of users, particularly in Tier II and III cities. The startup has established partnerships with several financial institutions, including HDFC Bank, CreditBee, and Tata Capital. This extensive network further enhances its offerings in the credit space.
A Vision for the Future
“India has an active borrower base of over 250 million consumers,” says Ishaan Mittal, Managing Director of Peak XV Partners. “GoodScore’s mission is to empower them by putting control over their credit health in their hands.” By providing actionable insights, users can efficiently manage repayments, resolve disputes, and ultimately take charge of their financial futures.