S&P Global and Coinbase Ventures have participated in a $6 million funding round for Credora, a startup that specializes in privacy-preserving technology for real-time credit analytics.
Credora operates within the DeFi and CeFi sectors and identifies information asymmetry as a significant contributor to recent credit events, such as those involving Three Arrows Capital and Alameda. The company notes that borrowers often hesitate to share sensitive information, which forces lenders to rely on reputation and personal connections when providing credit.
To tackle this issue, Credora offers lending infrastructure and systematic credit ratings for private credit markets. Their technology enhances lenders’ ability to evaluate credit risk accurately and in real-time while preserving the confidentiality of borrower data.
The firm has successfully facilitated over $1 billion in uncollateralized loans, engaging with more than 100 borrowers and lenders in the process.
Darshan Vaidya, CEO of Credora, stated, “Credora solves the information asymmetry problem by using private computation techniques on real-time data, ensuring borrowers continuously validate their creditworthiness while maintaining the privacy of their sensitive information.”