caleidofin, a financial technology A startup focused on building a digital ecosystem to accelerate access to formal finance for growing small businesses in the informal sector, has raised $13.8 million in funds.
Netherlands-based Rabo Partnerships BV led the funding round with an investment of $11 million.
The remaining capital came from existing backers including the Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish. The round brings its historic fundraising to $37 million.
What does the kaleidoscope do?
Founded in 2017, kaleidofin is a financial services platform with a mission to build a digital financial ecosystem for everyone, everywhere.
The startup offers financial solutions for low-income clients and businesses working in the informal economy through the kaleidofin platform.
By combining credit health assessment (ki score), middleware rails, risk management dashboards (ki view) and debt capital markets structuring capabilities (ki credit), it unlocks financing for banks’ informal sector clients and other deep pools of capital.
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Kaleidofin’s presence in the market
Kaleidofin claims to have facilitated the disbursement of loans totalling more than $2.7 billion to over 4.7 million clients and small businesses working in the informal economy since 2020.
By creating underwriting standards for impact finance and innovating debt structures that scale inclusion, kaleidofin is taking an ecosystemic approach to delivering financial inclusion through its platform, especially focused on women, agriculture, nano-entrepreneurs and youth in emerging market economies.
“They have established themselves in India as a leading player in credit and risk rating services, targeting primarily women, small entrepreneurs and the agricultural segment. This investment perfectly supports our strategy of promoting data-driven financial solutions through local institutions and service providers. We aim to leverage our ecosystem approach through value creation and impact, and look forward to a fruitful long-term partnership with Kaleidofin,” said Marianne Schoemaker, CEO of Rabo Partnerships.
Purpose of fundraising
The startup plans to use the capital raised to expand its lending portfolio and expand credit scoring, middleware and risk services through select partnerships.
“Rabo Partnerships’ multi-faceted approach to advancing financial inclusion, private equity development and food security around the world has been highly effective in fostering innovation and growth,” said Sucharita Mukherjee, co-founder and CEO of kaleidofin.
“We believe that Kaleidofin’s understanding of the Indian rural economy, where 61% of people are directly or indirectly dependent on agriculture, and Rabo Partnerships’ focus on the agriculture sector will further strengthen our customer service capabilities, support and offer customers and small businesses more suitable loans in the agriculture segment,” Mukherjee added.
Prior to this, kaleidofin raised $23 million from prominent investors including Bill & Melinda Gates Foundation, Michael & Susan Dell Foundation, Omidyar Network India, Oikocredit, Blume Ventures, Bharat Fund and Flourish Ventures.
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