AI-based credit scoring startup Aire has raised $5 million in a Series A funding round and won deals to work with P2P lending pioneer Zopa and the UK arm of Toyota Financial Services.
Sunstone Capital led the financing round, which was also joined by previous investor White Star Capital.
Aire is one of many fintech startups looking to upend the old-fashioned credit scoring system by using new technology and data. The firm’s products, such as the Interactive Virtual Interview, promise to help lenders and high street banks better understand applicants, such as first-time borrowers and self-employed or freelance workers, who have thin-file credit histories.
The company has already scored over $5 billion of credit across various categories of consumer credit and last year gained approval from the UK's FCA.
It now plans to use the new funds for a recruitment drive as it carries on work to enhance the accuracy of its algorithmic underwriting, emulating human capabilities through machine learning.
Aneesh Varma, CEO, Aire, says: concluded: "Aire has stood for an idea that people should have equal opportunities for financial products despite changing realities of work, lifestyle and careers in this modern economy. This new funding round is strong vindication that we are making the right progress towards that goal."