Understanding Risk Ratings
Every deal on Vridi carries a risk rating — Low, Medium, or High. Here's exactly how Kredy assigns them and how to use them when building your portfolio.
How Kredy assigns ratings
Every borrower on Vridi has been credit-evaluated by Kredy, our institutional credit engine. Kredy analyses multiple data signals — not just a bureau score — to arrive at a rating that reflects the real probability of timely repayment.
The key inputs Kredy uses:
GST filing history
Consistent GST filings signal genuine trade activity and financial discipline. Gaps or amendments raise flags.
Bank statement analysis
Cash flow consistency, average monthly credits, and the ratio of credits to debits over 12–24 months.
Trade history on the platform
Repeat borrowers with clean repayment history get credit for that track record.
Bureau scores
CIBIL / CRIF data for the business and promoters. Delinquencies and restructuring history are factored in.
Buyer (drawee) strength
The financial standing of the buyer matters as much as the seller. A large listed corporate as buyer substantially reduces risk.
Invoice quality
Is the invoice confirmed by the buyer? Is there a dispute history? What's the typical payment track record for this buyer?
What each rating means
Strong borrower profile with consistent GST compliance, healthy cash flows, and a buyer with demonstrable payment history. These deals have the highest probability of on-time repayment. Suited for investors who prioritize capital preservation over yield maximization.
Good borrower fundamentals with some variability — perhaps a newer GST history, a buyer with moderate credit, or occasional cash flow fluctuations. The incremental return compensates for slightly elevated uncertainty. The majority of deals on Vridi fall in this category.
Higher risk profile — newer businesses, less predictable buyers, or concentrated industry exposure. These deals are still evaluated and approved by Kredy, but carry a meaningfully higher probability of delay or partial default. The returns are higher to price this risk in.
"A High rating doesn't mean a bad deal. It means a deal where the additional risk is explicitly priced into the return."
Using ratings to build a portfolio
The most common mistake new investors make is concentrating in either extreme — all Low (leaving returns on the table) or all High (concentration of default risk).
A well-constructed portfolio typically looks something like this:
This structure caps your maximum loss in a single default at 10% of capital, while the blended return remains well ahead of FDs and most debt funds.
Ratings aren't guarantees
A Low rating means a lower probability of default — not a zero probability. Invoice discounting is not a deposit. Kredy's credit evaluation reduces risk substantially, but it cannot eliminate it.
The safeguards — Kredy's evaluation, escrow protection, and Vridi's recovery process — work together to minimize loss given default. But investors should size their positions accordingly and never invest amounts they cannot afford to have at risk.
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