Nova Credit Lands $45 Million In Funding For Alternative Credit Scoring

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Nova Credit has received $45 million in Series C funding in a round led by Canapi Ventures.
The investment boosts Nova Credit’s total funding to $79 million.
Today’s funds will be used to broaden its product offering and scale its cash flow underwriting and income verification tool Cash Atlas.

Borderless credit data company Nova Credit has brought in $45 million in Series C funding this week. The investment– which was led by Canapi Ventures with participation from Kleiner Perkins, General Catalyst, Index Ventures, Y Combinator, Avid Ventures, Geodesic Capital, Harmonic Capital, Radiate Capital, and Socium Ventures– boosts the company’s total raised to $79 million.

The company will use the funds to broaden its product offering beyond cross-border credit reporting and scale its cash flow underwriting and income verification tool Cash Atlas. Along with Cash Atlas, Nova Credit also offers Credit Passport, an API that translates an international credit report into a local-equivalent credit score to allow newcomers to the U.S. to use the credit score of their home country.

To power these two products, Nova Credit leverages open finance to analyze consumer-permissioned transaction data for underwriting purposes. With insight from a prospective borrower’s cash flow, the company can underwrite the more than 60 million new-to-credit, new-to-country, and other thin-file consumers.

“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,” said Nova Credit Co-founder and CEO Misha Esipov. “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.”

Nova Credit has seen growth in terms of revenues, partners, and geography since closing its $50 million Series B round in 2020. In the past three years, the California-based company has grown its revenue 10x and has added HSBC, Verizon, Scotiabank, Earnest, and Yardi to its partner roster, and has expanded its product reach to 20 countries outside the U.S., including Canada, the U.K., the UAE, and Singapore.

In the future, Nova Credit plans to introduce new solutions ranging from new-to-credit and thin-file underwriting to customized KYC and verification solutions. “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,” explained Esipov. “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.”

Photo by Dany Kurniawan