kaleidofin raises $13.8 million funding to accelerate access to formal finance to small businesses

kaleidofin, a fintech startup focused on building a digital ecosystem to accelerate access to formal finance for small and growing businesses in the informal sector, has raised $13.8 million in funding. 

Netherlands-based Rabo Partnerships B.V. led the funding round with an investment of $11 million.

The remaining capital came from existing backers Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish. The round brings its all-time raise to $37 million.

What does kaleidofin do?

kaleidofin, a fintech startup focused on building a digital ecosystem to accelerate access to formal finance for small and growing businesses in the informal sector, has raised $13.8 million in funding. 

Netherlands-based Rabo Partnerships B.V. led the funding round with an investment of $11 million.

The remaining capital came from existing backers Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India and Flourish. The round brings its all-time raise to $37 million.

What does kaleidofin do?

Founded in 2017, kaleidofin is a financial services platform with a mission to build a digital financial ecosystem for everyone, everywhere.

The startup provides financial solutions for low-income customers/businesses working in the informal economy via 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 finance for informal sector customers from banks and other deep pools of capital.

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kaleidofin's market presence

kaleidofin claims to have facilitated loan disbursal of cumulatively over $2.7 billion for over 4.7 million customers and small enterprises working in the informal economy since 2020.

By building underwriting standards for impactful finance and innovating on debt structures that scale inclusion, kaleidofin is taking an ecosystem approach to delivering financial inclusion via 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 scoring and risk services, predominantly targeting women, small entrepreneurs and the agricultural segment. This investment seamlessly supports our strategy of promoting data-driven finance solutions through local institutions and service providers. We aim to leverage our ecosystem approach through value creation and impact, and we are looking 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 raised capital to scale its lending portfolio and expand credit scoring, middleware and risk services through selected partnerships.  

"Rabo Partnerships multi-faceted, partnership approach towards promoting financial inclusion, private capital development and food security across the globe 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 individuals are directly or indirectly dependent on agriculture, and Rabo Partnerships’ focus on the agri sector will further strengthen our capabilities in serving the customer, underwriting the customer and in offering customers and small businesses more suitable loans in the agri segment," Mukherjee added.

Prior to this, kaleidofin raised $23 million from marquee investors like Bill and Melinda Gates Foundation; Michael & Susan Dell Foundation, Omidyar Network India, Oikocredit, Blume Ventures, Bharat Fund, and Flourish Ventures.