The investment follows the company’s pre-series A funding of over $1 million in June last year led by Fintonia Group.
CredoLab, which is currently focused on Southeast Asia and China, provides alternative credit scoring solutions to financial institutions and retailers to reduce delinquency.
The company utilises its proprietary mobile application, CredoApp, to extract a unique digital footprint from a consumer’s mobile phone. The company uses proprietary data science algorithms to extract and analyse close to 50,000 data points, and turns these completely anonymized digital footprints into highly predictive digital credit scorecards.
In the last 12 months, CredoLab has partnered with almost 30 consumer lending institutions and generated millions of data sets and credit scores for clients across Southeast Asia, China, Latin America, Africa, and the Commonwealth of Independent States.
With this new investment, CredoLab will focus on underserved regions, including Asia, where more than half of the world’s underserved lives, and Africa, where less than 20 per cent of the population has access to formal financial services and where smartphone penetration growth is among the highest in the world.
The deal will see CredoLab join Walden’s list of over 500 companies in 12 countries. The venture capital firm boasts over 100 IPOs on 15 stock exchanges and more than 70 M&A exits
“Our next stage of growth will focus on expanding globally and actively seeking partnerships with alternative data providers to generate high quality leads for banks and consumer finance companies,” said CredoLab co-founder and chief executive officer Peter Barcak.
Walden, whose funds total $2.6 billion in committed capital, invests in internet and digital media, semiconductors, software, IT services and emerging technologies industries.
Last month, the firm participated in a $762,000 seed investment in Singapore-based software-as-a-service (SaaS) company Dexecure and led a $2.57 million Series A funding round in Singapore-based restaurant management platform provider TabSquare.