International credit bureau Nova Credit has raised $45 million in Series C funding to build new products for lenders using alternative credit data.
The capital will be used by Nova Credit to further broaden its product offering beyond cross-border credit reporting for new-to-country consumers, with a focus on cash flow underwriting and verification of income and employment via its CashAtlas product.
Misha Esipov, co-founder and CEO of Nova Credit, comments: “While cross-border credit remains critical to our strategy, we’re excited to broaden our offering and tackle a new set of industry challenges long unsolved. This new capital fortifies our position to continue being a dependable partner to the many banks and lenders we serve and accelerates the pace of innovation in an industry very much in need of change.”
He says that where traditional credit reporting is limited or absent to underwrite over 60 million new-to-credit, new-to-country, and other thin-file consumers, new applications that utilise open finance datasets and other alternative sources can generate differentiated, reliable, and compliant insights on personal consumer profiles.
Since raising its Series B in 2020, Nova Credit has grown revenues by 10x and partnered with dozens of companies, including HSBC, Verizon, Scotiabank, Earnest, and Yardi. The company has also expanded internationally, bringing its products to service newcomer corridors destined for Canada, the UK, the UAE, and Singapore.
The new funding round was led by Canapi Ventures alongside existing backers General Catalyst, Index Ventures, Kleiner Perkins, Y Combinator, and Avid Ventures, as well as new investors Geodesic Capital, Harmonic Capital, Radiate Capital, and Socium Ventures.