Aire pulls in $5m, lands partnerships with Zopa and Toyota Financial Services
Alternative credit scoring company, Aire, has raised $5 million in Series A funding. The round was led by Sunstone Capital, with funds also coming from White Star Capital, which led the company’s 2016 seed round. Aire’s funding now totals $12 million, reports Finovate (Banking Technology’s sister company).
The London-based company plans to use the funds to drive recruitment. CEO Aneesh Varma says: “Aire has stood for an idea that people should have equal opportunities for financial products despite changing realities of work, lifestyle and careers in this modern economy.” Varma adds that the new funds are a “strong vindication that we are making the right progress towards that goal”.
Founded in 2014, Aire leverages artificial intelligence (AI) and machine learning to offer lenders new insight into borrowers with thin credit files. The company’s interactive virtual interview adds a new layer of information to traditional credit bureau data. Because Aire’s credit risk analysis gives lenders access to a new pool of thin-file borrowers, the company has seen credit approvals grow by up to 14% on average, without increasing risk exposure.
Aire also announced strategic partnerships with P2P lender Zopa and the UK arm of vehicle finance company, Toyota Financial Services, who will leverage Aire’s API to enhance their underwriting and lending decisioning processes. These firms join credit card companies and high-street banks also benefitting from Aire’s API.
Last year, the company made headlines when it announced it was authorised and regulated by the UK Financial Conduct Authority, placing Aire on the same playing field as the big three credit bureaus. The company debuted its API at FinovateEurope 2015 in London.