Gurugram-based AI-powered collections platform CredResolve has raised $1.1 million in a seed funding round led by Japanese venture capital firm UNLEASH Capital Partners, with additional participation from CDM Capital. This funding is set to accelerate CredResolve’s mission of transforming debt recovery in India through artificial intelligence and regulatory-driven automation.
AI-Powered Debt Resolution
Founded in August 2023 by Balaji Koustubha, G Prashant Kumar, and Vijay Kumar, CredResolve is redefining the collections ecosystem by integrating AI with borrower engagement strategies. Unlike traditional debt collection models, the platform enhances efficiency through automated recovery workflows, improved borrower communication, and compliance with Reserve Bank of India (RBI) regulations. This tech-first approach aims to improve recovery rates while reducing operational inefficiencies in India’s financial ecosystem.
Investment to Fuel Expansion and Tech Innovation
CredResolve plans to leverage the fresh capital to expand its partnerships with over 25 financial institutions, including banks, fintech firms, Non-Banking Financial Companies (NBFCs), and Asset Reconstruction Companies (ARCs). The investment will also be directed toward enhancing its AI-driven debt resolution technology, allowing the company to streamline collections while ensuring strict regulatory compliance. Additionally, CredResolve aims to strengthen its presence across multiple cities, addressing the growing demand for data-driven, borrower-centric recovery solutions. This funding follows an earlier angel round of $100K in February 2024, which saw participation from PedalStart, Tujala Goud, and other early investors. Currently, the startup serves over 20 lenders and generates an annual recurring revenue (ARR) of approximately $1 million, with ambitious plans to triple its revenue within a year.
Investor Confidence in AI-Led Collections
Highlighting the rationale behind the investment, Natsuki Sugai, Founder and Managing Partner at UNLEASH Capital Partners, stated, “CredResolve’s AI-driven approach, rapid adoption among lenders, and a leadership team with deep expertise in fintech and technology make it a standout player in India’s evolving collections industry.”
CDM Capital’s Managing Partner, Davesh Manocha, echoed this sentiment, emphasizing that “AI is fundamentally transforming the debt recovery landscape, making it more efficient, scalable, and borrower-friendly. CredResolve is at the forefront of this shift.”
CredResolve’s AI-driven approach to debt collection has significant implications for India’s financial technology sector, particularly in enhancing financial inclusion, regulatory compliance, and market competition. By improving the efficiency of debt resolution, the platform enables financial institutions to recover outstanding loans more quickly, which in turn expands access to credit for borrowers who may have previously struggled with delinquent accounts. Additionally, with strict adherence to RBI guidelines, CredResolve sets a precedent for compliant and ethical collection practices, reducing regulatory risks for lenders while ensuring a more transparent recovery process.
In a competitive landscape that includes startups like CredGenics, DPDZero, Spocto, and Skit.AI, CredResolve’s AI-powered model positions it as a leading innovator, challenging traditional debt collection methods and reshaping how financial institutions manage recoveries in India’s evolving fintech ecosystem.
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As digital lending continues to expand in India, the demand for efficient, tech-driven debt recovery solutions is expected to rise. With the backing of UNLEASH Capital Partners and CDM Capital, CredResolve is well-positioned to scale its offerings, making debt collection more streamlined, borrower-friendly, and technologically advanced.
The success of this funding round signals growing investor confidence in AI-driven financial technology solutions, further solidifying India’s position as a global fintech powerhouse. As CredResolve accelerates its expansion, its impact on lenders, borrowers, and the broader fintech ecosystem will be closely watched by industry leaders.
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