Credora is a crypto startup that provides technological infrastructure for institutional credit across CeFi(Centralized Finance) and DeFi(Decentralized Finance) platforms. The firm is building confidence in credit markets with its privacy-preserving technology that enables real-time credit analytics to power transparent and efficient markets. The New York-based firm argues that borrowers do not feel comfortable in sharing their sensitive information therefore, forcing lenders to rely on reputations and relationships when deciding to extend credit. This opaqueness in lending models weakens lenders as evident in last year’s crypto winter where centralized lenders including Genesis, Celsius Network and Voyager Digital collapsed and with them, billions of dollars of client capital.
Towards the end of last month, Credora announced that it had raised $6 million in a strategic funding round that was backed by S&P Global and Coinbase Ventures. Other investors that participated in the round include The Spartan Group, Amber Group, CMT Digital, HashKey Capital, GSR, Kucoin Ventures, Pirata Capital, Breed Venture Capital, Wagmi Ventures and Paradigm -a liquidity provider. The proceeds of the new financing round will be utilized to build out infrastructure and help Credora bolster its private computation technology that is used to underwrite and monitor borrowers.
The infrastructure being built by Credora is set to solve the information asymmetry problem by using private computation techniques on real-time data therefore, ensuring that borrowers continuously validate their creditworthiness while at the same time maintaining the privacy of their sensitive information. According to Darshan Vaidya, the CEO of Credora, the firms infrastructure helps create more transparent and open lending markets built on robust underwriting standards.
Founded in 2019, Credora has been providing lending infrastructure and a credit ratings system that is tailored towards private credit markets. According to data from Credora, the firm has to date managed to facilitate over $1 billion in loans. The firm has also managed to monitor a total value of over $3 billion and made 25 and 16 CeFi and DeFi integrations respectively. Currently, the platform is facilitating about 80 borrowers and 25 lenders.
Credora’s offering is a complete lending platform with counterparty credit ratings and support for several business sectors including mining, trading firms, DAOs(Decentralized Autonomous Organizations), Fintechs and Insurance. The firms solutions are trusted by industry leaders including Maple Finance, Zest Protocol, Cega, Atlendis, Wintermute and Clearpool among other lending firms.
