GoodScore Secures $13 Million in Series A Funding
Bangalore-based fintech startup GoodScore has successfully raised $13 million (approximately Rs 116 crore) in a recent Series A funding round. This round is led by Peak XV Partners and sees the participation of existing investors including Stellaris Venture Partners and Saison Capital.
Purpose of the Funding
The newly acquired funds will be instrumental for GoodScore as they aim to enhance their AI-powered credit advisory services. The startup is focused on expanding its engineering and product teams, while also strengthening its credit marketplace that connects borrowers with lenders. Additionally, GoodScore plans to extend its services to tier II and III cities across India, thereby increasing access to credit.
About GoodScore
Founded in 2023 by Sanchit Bansal, GoodScore empowers users to manage and improve their credit health through personalized insights powered by artificial intelligence. The user-friendly app pulls together data from various sources, including credit bureaus, banking transactions, and spending records, offering a comprehensive view of an individual’s credit profile.
Features of the GoodScore App
The GoodScore app provides users with several valuable tools, including score improvement strategies, payment reminders for EMIs and credit cards, and direct access to financial experts. These features offer users a holistic approach to improve their creditworthiness, helping them make informed financial decisions.
User Base and Monetization
GoodScore boasts over five million active users, charging a nominal subscription fee of Rs 99. The startup has formed partnerships with prominent banks and non-banking financial companies (NBFCs), such as HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, and KreditBee, among others. These collaborations aim to assist users in managing their repayments and accessing improved credit opportunities.
Financial Performance
GoodScore commenced monetizing its platform in FY24, reporting an operating revenue of Rs 2.5 crore, a significant increase from negligible figures in FY23. However, this growth comes with challenges, as the startup also experienced a surge in losses, which intensified by 7.7 times to Rs 7 crore during the same period.
Future Prospects
The current funding round marks a crucial milestone for GoodScore as it aims to utilize the capital effectively to expand its services and reinforce its market position. With plans to enhance its AI technology and broaden its reach, the startup is well-positioned to play a vital role in transforming the credit landscape in India, particularly for underserved regions.