As a fintech startup specializing in consumer credit health based in Bengaluru, GoodScore has been able to raise $13 million in a Series A round of funding. Peak XV Partners led the funding round. Stellaris Venture Partners and Saison Capital also participated in the funding round. GoodScore was founded by Sanchit Bansal in 2023.

Core offering of GoodScore

The core of the GoodScore value offer is to make the management of credit profiles of Indian customers simpler and smarter. The startup provides a full range of credit management tools based on Artificial Intelligence (AI). Its platform gives its users real-time insight into their credit, the ability to track their repayment plans, and personalised recommendations that are designed uniquely in order to assist them in raising their credit scores. This is essential in the present-day financial climate, whereby effortless access to digital credit has seen the emergence of increasing cases of over-leverage and over-stress of repayment among consumers. GoodScore seeks to solve this problem by reinstating visibility, control, and discipline back to the financial lives of consumers.

Sanchit Bansal said, “We started GoodScore with the belief that managing credit shouldn’t be as stressful or confusing as it is today. We wish to change how Indians interact with credit by bringing every user’s credit life into one view, helping them understand their loans, track payments, and make informed, data-driven financial decisions.”

The Managing Director at Peak XV, Ishaan Mittal, said, “India has an active borrower base of over 250 million consumers. GoodScore is on a mission to empower them by putting them in charge of their credit health. They can track scores, take actionable steps to resolve bureau disputes, and manage repayments seamlessly.”

Quotations Source: YourStory  

Strategic utilization of fresh funds

GoodScore has identified a firm plan on how to use the new fund of $13 million to ensure it grows and improves its product. Its capital will mainly be used to expand its own AI-powered advisory tools and advance its technological skills. The business is also strategizing a massive outlay in its human resources, in particular, expanding its product and technology workforce. One of the strategic plans of the funding is the creation of its credit market, which is aimed at the effective connectivity of borrowers and lenders in India. In addition, the firm has the objective of improving its user adoption in Tier 2 and Tier 3 cities, which promotes greater financial inclusion.

Consumer lending has become incredibly accessible as a result of the development of the Indian fintech sector, but it has also brought about new problems. Statistics show that there is an alarming trend in the increase in delinquencies, and accountable credit management tools have become more of a necessity. 

As of March 2025, the amount of uncollected personal loans more than 90 days old had increased to 3.6, whereas the amount of uncollected credit card balances over 91-360 days increased by a marked annual rate of 44%. Part of this spike can be explained by the fact that borrowers have at the same time three or even more unsecured loans. GoodScore directly addresses this market friction by offering an integrated, AI-driven credit management platform that integrates credit bureau data, transactional insights, and behavioural patterns to provide users with actionable advice.

The Principal at Stellaris Venture Partners, Mayank Jain, said, “Having known Sanchit for over a decade, I have seen firsthand his deep customer-backwards orientation and product-first mindset. That conviction made it natural for us to back him from day zero.”

Quotation Source: YourStory  

Conclusion

The $13 million Series A financing of GoodScore by Peak XV Partners highlights the importance of credit health management becoming increasingly significant in India, and its rapidly expanding and increasingly sophisticated digital lending sector. With its emphasis on developing an interconnected credit marketplace and relying on AI-based advisory technology, the Bengaluru-based fintech has the potential to promote consumer responsibility in borrowing by the vast audience of credit-engaged customers in India. The capital will be central to expanding its technology and staff, enabling GoodScore to have a significant effect on financial literacy and inclusion in both large and small cities.