AI-led fintech startup AbleCredit is reportedly in advanced discussions to raise $5 million in its Series A funding round, sources familiar with the matter. The round is expected to be led by a prominent Indian venture capital firm, with existing backers Merak Ventures and Venture Catalysts also set to participate.
According to sources, the startup is currently in talks with a few Tier I VC firms and a major strategic investor to join the round, although specific names were not disclosed. The funding will primarily be used to further develop and enhance the startup’s AI-driven credit underwriting model, the sources added.
Founded in 2023 by Utkarsh Apoorva, Harshad Saykhedkar, Ashwini Prabhu, and Anubhab Bandyopadhyay, AbleCredit positions itself as an AI copilot for lending workflows. Bandyopadhyay exited the company in November 2024, according to his LinkedIn profile.
AbleCredit last secured $1.25 million in a seed round in May 2024, led by Merak Ventures, with participation from Venture Catalysts and Helios Holding.
The platform automates several critical aspects of the lending process, including generating credit appraisal memos tailored to institutional lending policies, verifying cash flows, personalising loan terms, analysing collateral documents, and managing deviations. Its tools are designed not just for credit teams, but also for sales and risk departments within financial institutions.
The startup is currently piloting a new offering called AbleCash, aimed at helping MSME owners make informed financial decisions. Plans are underway to expand AbleCash’s capabilities with new features and product extensions.
This development comes amid growing adoption of AI in the BFSI sector, where fintech players like Lendingkart, RING (formerly Kissht), and KreditBee are increasingly utilising AI, ML, and analytics to streamline loan disbursals and assess creditworthiness.
A 2024 survey of 50 venture capital firms revealed that 57% identified vertical GenAI solutions for fintech as a top investment priority. Startups such as Arya.ai, OnFinance, and Rezolv are also emerging as notable players in this space.
AbleCredit’s upcoming funding round signals rising investor interest in AI-native solutions for financial services, as startups seek to modernize legacy systems and enhance lending efficiencies through automation and data intelligence.
