Impact Micro Ventures (IMV)

IMV has pioneered the use of AI in unsecured lending to “no-file” and “thin-file” micro enterprises in India. These informal micro-enterprises do not possess data or digital trail – they are unregistered, do not keep books of accounts, do not maintain documentation and do not fall under tax/ GST gambit. While microfinance institutions are able to reach out to less than 10% of this ‘missing middle’ segment, the mass market remains untouchable due to lack of cost-effective underwriting mechanisms. IMV’s machine learning (ML) model has solved the problem by predicting the loan eligibility and ‘probability of default’ based on shop’s visual profile and lat-long based hyperlocal market conditions. Further, a psychometric tool (10 mins animated game) predicts repayment behavior and ‘intent to pay’ based on classification of person into opportunity or necessity entrepreneur. These AI tools, which are installed on field officer’s phone, have resulted in 128% jump in lender’s EBITDA. More than twenty pan-India lenders (large NBFCs, large MFIs and Small Finance Banks) have piloted and validated the AI tools. Three pan-India lenders have made the AI tools an integral part of their core underwriting process. IMV’s end-to-end integrated platform (with embedded AI tools) serve as loan origination, sanction and loan management system for lenders.