Aug 19: The investment will bolster the technological infrastructure and capabilities of CGreen, which will be useful for making more informed decisions regarding recovery.

Investment for Bharat’s recovery process

Indifly has made an investment in CGreen, which is a technology-driven loan recovery and borrower intelligence firm aimed at enhancing the recovery process in Bharat.

This investment will help in the expansion of the technology platform of CGreen, enhance its resolution network and fast track their growth in tier 3 and below markets.

Together, these two corporations hope to foster an advanced and well-organized loan recovery environment whereby a good comprehension of the borrower will result in proper recovery actions.

The problem with the current system

India’s lending space has expanded dramatically, but the collections infrastructure has not been able to catch up.

Most lenders continue to use manual processes, call centers, and scattered reporting that give very little insight into borrower engagement. Even as technologies such as text messaging, WhatsApp, email, and Interactive Voice Response enable initial contact, they fail when it comes to reaching out to borrowers later on.

Lenders often find themselves in the situation of making decisions on how to recover the dues without knowledge of why it was that the borrower had defaulted. This is especially true for lenders like banks, NBFCs, MFIs and fintech companies functioning in Tier 3 and below markets.

Going from Information to Intelligence, CGreen brings together the power of Artificial Intelligence, Voice AI, borrower interaction capture, field intelligence, workflow design and Pragati Kendras for lenders to gain insights on overdue cases.

An important element in this strategy involves the separation of intent problems, where a borrower does not want to repay, and ability problems, where legitimate financial reasons make payment impossible.

This will help the lenders to decide on a more appropriate strategy for resolving the case. The model has been implemented at a large scale. CGreen has partnered with 29+ lenders and manages 3 lakh+ borrowers with AUM managing more than ₹1,350 crore. It has a remote network across India, with an on-the-ground presence in Uttar Pradesh, Maharashtra & Assam.

Reasons behind Indifly’s investment

This investment by Indifly is consistent with the long-term vision of Indifly to build technology-led companies for Bharat’s digital economy.

Indifly is an innovation factory for financial services, fintech infrastructure, and digital inclusion that works with founders addressing large structural problems through technology and execution. The approach taken by CGreen towards loan recovery solves one such problem by leveraging borrower insight and ground-level expertise to enhance the ability of lenders to recover unpaid loans.

Through the partnership, CGreen will be able to expand its platform, improve its AI technology, and establish its resolution structure in under-serviced lending sectors.

Leadership Insights

According to Vipr Raj Bhardwaj, CEO, CGreen,

 "Loan recovery should start with an understanding of the borrower, rather than the default. We have always focused on empowering the lender with the right information, so that they can take an informed decision. This collaboration will allow us to enhance our technology and reach and build loan resolution infrastructure for Bharat."

Abhinath Shinde, Co-Founder & Director, Indifly, said,

 "CGreen fills a critical void in the lending space of India through the confluence of technology, borrower insight, and execution on the ground. We feel that there is a possibility of better recoveries, coupled with a more structured model for the lenders in Bharat."

Building Bharat with CGreen

With this fundraise, CGreen will enhance its abilities to use AI and borrower intelligence, expand the Pragati Kendra chain and build ties with banks, NBFCs, MFIs and fintech lenders.

It hopes to expand its infrastructure for resolving loans into underserved markets and help lenders make better informed recovery decisions.