The $16M Series A funding round led by Avataar Ventures will help CredCore, an AI-driven startup, to enhance transaction efficiency in the enterprise debt investment sector, enabling clients to expand their teams and increase their assets under management (AUM).
NY-based fintech company CredCore, which aims to transform the enterprise debt landscape, secured a $16 million aggregate investment in the Series A funding round led by Avataar Ventures, with participation from Inspired Capital, Fitch Group, BellTower Partners, and senior executives in asset management and financial services.
The startup focuses on providing financial institutions with tools to enhance efficiency, compliance, and strategic decision-making when it comes to modernizing enterprise debt investing and management. For that purpose, CredCore combines a debt-focused artificial intelligence (AI) platform with the expertise of senior credit professionals.
The firm’s AI-empowered platform manages the credit stack and capital deployment, offering various helpful features such as workflow automation, cross-portfolio analysis, ecosystem collaboration, summarization of dense financing documents, and smart checklists. All these tools aim to reduce costs, expedite execution, and minimize contract breaches for asset managers and enterprise borrowers.
Another part of the CredCore offering is the Tusk Fin solution, which streamlines the collection and conversion of financial statements and compliance certificates into standardized Excel reports. By automating complex and lengthy data gathering and processing tasks, Tusk Fin enables users to focus on strategic financial analysis rather than manual data handling.
The enterprise debt investment sector has several key challenges, primarily related to risk assessment, liquidity, regulatory compliance, and market dynamics. Professionals operating in this sphere face challenges in evaluating the creditworthiness of private enterprises, which can be complex and require deep due diligence. Besides, different jurisdictions have varying rules around enterprise debt issuance and investment, while legal compliance is critical.
However, one of the main issues in enterprise debt investment is data access and consistency. Private enterprises may not disclose financials as extensively as public companies, leading to information asymmetry. Therefore, investors need to rely on third-party auditors, rating agencies, or proprietary research.
“Marrying credit and technology has historically been insurmountable. The industry is fragmented, complex, and specialized, with data that is often unavailable and inconsistent. At CredCore, we are solving this with proprietary AI models trained on $5 trillion worth of data. However, technology is just a part of the solution. Expert oversight remains indispensable to ensure precision and trust. This is where we differentiate ourselves with domain-specialists-in-the-loop.”
Saumil Annegiri, Co-Founder of CredCore
Karthik Nandyal, Co-Founder of CredCore, also noted that enterprise credit is currently at a stage of technology adoption similar to where equities were three decades ago despite credit markets being significantly larger. He explained that CredCore was founded on decades of industry experience, combining advanced AI research with innovative business processes to drive technological transformation in credit markets. Nandyal further emphasized that advancements in AI, such as self-deployed models and more efficient architectures, are enabling greater automation and enhanced data privacy, allowing CredCore to provide better outcomes for its customers.
