Bengaluru-based Credfix, a debt-resolution startup that uses AI to help distressed borrowers in India, said on October 7 that it raised 161 million rupees (US$1.67 million) in seed funding led by Tanglin Venture Partners, with Stargazer participating.

The company said it will use the funding to develop its product and AI tools, and expand borrower support across India.

Credfix said it had previously raised 45 million rupees (US$467,000) from K2 Capital, Invstt Trust, and angel investors. It now serves more than 200,000 borrowers with combined outstanding debt of over 40 billion rupees (US$415 million).

Founded in 2025 by Ranjan Agarwal, Neeraj Kulkarni, and Ayush Kedia, Credfix said its platform helps borrowers understand their debt, manage recovery calls, and review legal notices. The Reserve Bank of India has also issued guidance on how banks’ recovery agents should deal with borrowers.

In 2023, a surge in small personal loans in India raised concerns at the central bank.

🔗 Source: Credfix