2 - 4 minute read
Credora, a provider of institutional credit infrastructure that combines centralized and decentralized finance (DeFi), has raised $6 million in a strategic funding round. The round included S&P Global and Coinbase Ventures as investors, and the capital will be used to build out the technology and bolster Credora’s private computation technology that’s used to underwrite and monitor borrowers.
The New York-based company has facilitated over $1 billion in loans to date, according to the company. Credora provides lending infrastructure and a credit ratings system tailored toward private credit markets. The company’s privacy-preserving technology allows lenders to make informed real-time decisions without compromising borrower information.
Credora’s CEO, Darshan Vaidya, said in a statement, “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.”
The weaknesses of opaque lending models were revealed by the collapse of several centralized lenders, including Genesis, Celsius, and Voyager, which took out billions of dollars of client capital. Borrowers don’t want to share their sensitive information, which pushes lenders to rely on reputation and relationships when deciding to extend credit.
The funding round also included Spartan, Amber Group, CMT Digital, Hashkey, GSR, KuCoin Ventures, liquidity provider Paradigm.co, Pirata Capital, Breed VC, and WAGMI Ventures. The round takes Credora up to $16 million in total funding.
The Bottom Line
Credora’s innovative solution aims to solve the information asymmetry problem in lending by using private computation techniques on real-time data. The company’s privacy-preserving technology allows lenders to make informed real-time decisions without compromising borrower information. The $6 million funding round, which included S&P Global and Coinbase Ventures, will help build out the technology and bolster Credora’s private computation technology. This technology helps create more transparent and open lending markets built on robust underwriting standards. The weaknesses of opaque lending models were revealed by the collapse of several centralized lenders, including Genesis, Celsius, and Voyager, which took out billions of dollars of client capital. Credora’s solution has facilitated over $1 billion in loans to date, making it a promising asset for traders to keep an eye on.
