CredResolve raises capital to grow AI-led recovery platform

By Vriti Gothi

India-based debt collections infrastructure startup CredResolve has raised a Pre-Series A funding round led by Merak Ventures, with participation from existing investors Unleash Capital Partners and CDM Capital. The company did not disclose the funding amount.

The fundraise comes as India’s credit ecosystem grapples with a growing backlog of stressed assets and inefficiencies in recovery mechanisms. Industry estimates suggest that more than ₹5 lakh crore in distressed loans are currently managed through a fragmented network of collection agencies, many of which rely on manual processes, offer limited transparency to lenders, and face increasing regulatory scrutiny over borrower treatment.

Founded by Balaji Koustubha and Vijay Kumar, CredResolve positions itself as a full-stack collections infrastructure provider, combining artificial intelligence, digital engagement channels, field operations, and legal automation. The company currently manages over $6 billion in assets across more than 40 lenders and operates in 10 Indian states.

The newly raised capital will be used to expand the company’s geographic footprint to 15 states, enhance its multilingual AI and voice-based capabilities, and develop a self-serve platform aimed at simplifying onboarding for lenders.

The company’s model reflects a broader shift in the sector from activity-based tracking focused on call volumes or agent visits to outcome-driven accountability, where lenders gain real-time visibility into recovery performance across channels.

CredResolve’s hybrid approach—combining proprietary technology with operational control over field networks—distinguishes it from software-only platforms and traditional outsourcing firms. This model is intended to improve compliance, standardise borrower interactions, and provide lenders with greater transparency.

Existing investor Natsuki Sugai noted that the company has exceeded early growth expectations, citing tailwinds from India’s expanding digital lending market and increasing demand for compliant, technology-led collections solutions.

As regulatory pressure tightens and lenders seek more efficient recovery mechanisms, infrastructure-led platforms such as CredResolve are emerging as a critical layer in India’s credit value chain. The company’s planned investments in AI-driven engagement and scalable onboarding tools signal a push to capture a larger share of what remains a largely under-digitised segment of the financial services industry.