S&P Global and major investors back Credora in building transparent credit markets
New York, US
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April 25, 2023 09:00 AM Eastern Daylight Time
The crypto lending business model has come under intense scrutiny following a spate of recent credit events. Credora is helping rebuild confidence in credit markets through transparency, and today the lending infrastructure provider announced a $6m strategic funding round with S&P Global and Coinbase Ventures as major investors. The funding will be used to further build institutional rails for credit, and enhance Credora’s private computation technology that helps accurately underwrite and monitor borrowers.
Information asymmetry has been one of the root causes of recent credit events like Three Arrows Capital and Alameda, with borrowers unwilling to share sensitive information and lenders forced to rely on reputation and relationships when extending credit. The other major issue that plagued crypto credit markets was the crumbling of centralized lenders. Billions of dollars of client capital were lost due to opaque principal lending models (Genesis, BlockFi, Celsius, Voyager).
Darshan Vaidya, CEO of Credora commented, “Credora solves the information asymmetry problem by using private computation techniques on real-time data, ensuring borrowers continuously validate their creditworthiness while maintaining the privacy of their sensitive information. Credora’s technology helps create more transparent and open lending markets built on robust underwriting standards.”
Founded in 2019, Credora provides lending infrastructure and systematic credit ratings for private credit markets. It utilizes privacy-preserving technology to improve lenders’ ability to properly evaluate credit risk in real-time. Credora has facilitated over $1B in loans across various borrower types.
This strategic funding round also included participation from Spartan, Amber Group, CMT Digital, Hashkey, GSR, KuCoin Ventures, Paradigm.co, Pirata Capital, Breed VC, and WAGMI Ventures. With this announcement, Credora has raised over $16m in venture funding to date from notable investors, including Coinshares, DCG, Gemini Frontier Fund, Polychain, Primitive Ventures, and XBTO.
"We're delighted to have support for our mission to make credit markets more transparent and efficient, and will continue working with our partners to drive responsible data-driven lending,” said Darshan Vaidya, CEO of Credora. “Adding S&P Global as an investor strengthens our belief that privacy-preserving technology can revolutionize credit underwriting and risk monitoring.”
Charles Mounts, Chief DeFi Officer, S&P Global Ratings commented, “We are thrilled to engage in the credit DeFi ecosystem through our investment in Credora and believe the company is well positioned to be leaders in this space due to their innovative approach and utilization of technology.”
About Credora
Credora is building confidence in credit markets through privacy-preserving technology that enables real-time credit analytics and powers transparent and efficient markets. To date, Credora has facilitated $1b+ in uncollateralized loans across 100+ borrowers & lenders and can help well-capitalized, risk-managed borrowers borrow transparently and securely. Credora currently monitors over $4 billion of borrower assets with coverage across the majority of CeFi and DeFi venues. For more information on Credora, please visit https://credora.io/
About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world.
We are widely sought after by many of the world’s leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world’s leading organizations plan for tomorrow, today.
Contact Details
Credora
Bilal Mahmood
+44 7714 007257
b.mahmood@stockwoodstrategy.com
Company Website
