Nova Credit raises $45m to fund verification solution

18th October 2023

Data analytics company, Nova Credit has announced it raised $45 million in Series C funding.

The company says the funding to further broaden its product offering beyond cross-border credit reporting and scale Cash AtlasTM, the industry’s leading solution for cash flow underwriting and verification of income and employment. The expansion enables the company’s partners to grow within risk appetite by incorporating an expanded suite of open finance data pipelines, unique datasets, and category-defining analytics and compliance applications.

Since raising its Series B in 2020, Nova Credit has grown revenues by 10x and partnered with dozens of innovative companies, including HSBC, Verizon, Scotiabank, Earnest, and Yardi. The company has also accelerated international expansion, bringing its products to service newcomer corridors destined for Canada, the UK, the UAE and Singapore. Additionally, Nova Credit has more than tripled volumes since the start of 2023. With strong expertise working with consumer credit data, the Nova Credit team is poised to maintain this momentum by introducing a whole new range of solutionsfrom new-to-credit and thin-file underwriting to customized KYC and verification solutions.

The company says open finance has unleashed an era in which any business that extends credit can understand its customers in a far more personalized and tailored way. Cash flow underwriting is a powerful application of open finance that fills in the gaps where traditional credit reporting is limited or absent to underwrite over 60 million new-to-credit, new-to-country, and other thin-file consumers. However, unlocking the full potential of cash flow underwriting requires a unique set of capabilities that must be purpose-built for credit and compliance professionals. Central to these capabilities are bank-grade infrastructure and analytics that generate differentiated, reliable, and compliant insights from datasets across many consumer, alternative, and traditional sources.

Misha Esipov, Co-founder and CEO of Nova Credit said “Open finance data has been available for decades, but the industry has failed to assemble it into a suite of products that lenders can easily use to improve their customer onboarding and credit workflows.”

“For years, Nova Credit has pioneered the use of consumer-permissioned data to enable the world’s most reputable businesses to approve more customers without compromising their risk and compliance standards. 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.”

Jeffrey Reitman, General Partner, Canapi Ventures said “The credit landscape is evolving quickly right before our eyes. Winning solutions must strike a delicate balance between credit data and regulatory expertise, rapid product agility, and uncompromising enterprise reliability.”

“Over the last few years, Nova Credit has demonstrated time and time again its ability to transform complex credit data challenges into scalable industry solutions that are leveraged by financial partners to expand the aperture of customers they can serve. Nova has assembled the team, tech, and vision to usher in cash flow underwriting at scale. We could not be more excited to double down alongside this roster of investors in supporting Nova.”