Kaaj Secures $38 Million to Accelerate AI-Powered Credit Intelligence

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  Business and Finance on Wed, Nov 19th, 2025 by Finextra
      Locale: SINGAPORE

Kaaj Secures $38 Million to Accelerate AI‑Powered Credit Intelligence

Finextra reports that Kaaj, the AI‑driven credit‑intelligence platform, has closed a $38 million funding round that will help the company expand its reach, strengthen its product offering, and accelerate its go‑to‑market strategy. The round was led by a coalition of venture capital firms and strategic investors, including Khosla Ventures, First Round Capital, and Cohort Fund, with participation from Standard Chartered Capital.

The Core of Kaaj’s Value Proposition

Kaaj’s platform sits at the intersection of data science, machine learning, and financial services. The company claims that it can deliver real‑time, granular credit risk assessments for lenders that traditionally rely on static credit scores and manual underwriting. Its proprietary algorithm processes a wide array of alternative data points—including transaction histories, online behavior, and supply‑chain dynamics—to generate a comprehensive risk profile. This approach is particularly valuable for small‑to‑medium enterprises (SMEs) and gig‑economy workers who often lack a formal credit history.

In a recent interview, Kaaj CEO Elena Mikhailova said, “Our goal is to democratise access to capital by providing lenders with a smarter, data‑driven way to see the true creditworthiness of borrowers, beyond the limitations of traditional credit bureaus.” The platform offers an API that lenders can embed into their existing workflows, enabling instant decision‑making at scale.

Funding Round Highlights

The $38 million round was announced by Kaaj’s CFO, Daniel Reyes, at a virtual press event that streamed across Finextra’s network. Key takeaways include:

The new capital will be allocated to product development, regulatory compliance, and market expansion—especially into the European Union and Latin America, regions where SMEs face significant financing bottlenecks.

A Broader Context: AI in Credit Intelligence

The article links to a recent Finextra piece titled “AI‑Based Credit Scoring: Trends and Challenges,” which notes that the global AI credit‑scoring market is expected to exceed $5 billion by 2027. It highlights several drivers:

• Data Availability – The proliferation of digital footprints and transaction data provides a richer input pool for AI models.
• Regulatory Shifts – The EU’s “Digital Finance Strategy” and the US’s “Consumer Financial Protection Bureau” are encouraging alternative data usage, provided it meets privacy standards.
• Lender Demand – Banks and fintech lenders need faster, more accurate risk models to stay competitive, especially in a low‑interest‑rate environment.

Kaaj is well‑positioned within this landscape, leveraging synthetic data augmentation to train its models without compromising sensitive information, a technique highlighted in the referenced Finextra article.

Use Cases and Success Stories

Kaaj’s platform is already in use by several pilot partners. A case study featured in the article showcases how a mid‑size European bank reduced its loan approval cycle from 10 days to 48 hours, while maintaining a 95 % accuracy in default prediction. In the United States, a fintech startup using Kaaj’s API was able to extend credit lines to gig‑economy drivers with a 20 % higher approval rate compared to traditional models.

Future Roadmap

Looking ahead, Kaaj plans to:

1. Launch a “Risk‑Mitigation Toolkit” that incorporates stress‑testing and scenario analysis, catering to banks’ regulatory reporting needs.
2. Expand its API offerings to support real‑time fraud detection, a feature that dovetails with its credit‑risk focus.
3. Enter the Asian market, targeting emerging economies where SME financing gaps are particularly pronounced.

CEO Mikhailova remarked, “The funding we’ve raised allows us to accelerate these initiatives and, most importantly, to help more borrowers access the capital they need to grow.”

Bottom Line

Kaaj’s $38 million funding round is a strong signal that the market is hungry for AI‑enabled credit intelligence solutions that can democratise lending. With backing from reputable venture and strategic investors, Kaaj is poised to disrupt the SME lending ecosystem, deliver faster credit decisions, and help lenders mitigate risk more effectively. The company’s next steps—expanding into new geographies, enhancing its product suite, and tightening compliance—will be crucial in maintaining momentum as the fintech landscape evolves.