• San Francisco-based fintech automates the small business lending underwriting process from weeks to minutes, enabling lenders to profitably expand access to capital for underserved small businesses
• Kaaj’s platform deploys AI agents that work together to automate the entire credit analysis process
• The platform has already processed over $5 billion in small business loan applications

SAN FRANCISCO–(BUSINESS WIRE)–Kaaj, an agentic AI credit intelligence platform that simplifies small business lending, today announced it has raised $3.8 million in seed funding led by Kindred Ventures, with participation from Better Tomorrow Ventures and others.

Founded in 2024, Kaaj’s mission is to expand access to affordable capital for all small businesses. Using agentic AI workflows to help lenders analyze end-to-end loan packages and create decision-ready analysis for small business lending, Kaaj reduces lender costs and accelerates decision-making.

Kaaj’s founding team combines deep AI expertise and risk experience. Utsav Shah, co-founder and CEO, spent a decade at Uber and Cruise, building AI-powered decision-making systems at scale. Shivi Sharma, co-founder and President, is an expert in credit and fraud risk, formerly of American Express, Uber, and Varo Bank.

The capital will accelerate product development and expand Kaaj’s reach across the $1.7 trillion U.S. small-business lending market and the $1.3 trillion equipment finance market.

A Unique Market Opportunity: Expanding Access to Affordable Capital for Undercapitalized Small Businesses Across the U.S.

Small business formation has surged to record levels over the past two years, with U.S. small businesses now numbering more than 33 million. However, access to capital remains a critical challenge.

According to the Federal Reserve 2024 Small Business Credit Survey, approximately 50% of small business loan applicants fail to receive the full amount of capital they need, leaving businesses undercapitalized at crucial growth stages. A major reason for this gap is that for most lenders, loans under $1m are not profitable using current manual, time-intensive underwriting approaches.

To solve this, Kaaj’s platform deploys AI agents that work together to automate the entire credit analysis process, from business verification and cash flow analysis to asset valuation, financial analysis, and risk assessment. What traditionally takes underwriters days of manual work across thousands of documents, Kaaj completes the work in under three minutes, delivering decision-ready analysis that integrates seamlessly into existing loan origination systems.

“Lenders face a fundamental profitability problem: it takes the same amount of time and resources to underwrite a $100,000 loan as it does a $5 million loan,” said Shivi Sharma, President and co-founder of Kaaj. “This forces lenders to prioritize larger loans, leaving millions of small businesses without access to the capital they need to operate and grow. Kaaj’s platform doesn’t just speed things up. It fundamentally changes the economics of small business lending, making smaller loans profitable for lenders while improving the borrower experience.”

The platform has already processed over $5 billion in loan applications and has a growing customer base of lenders and brokers with industry-leading companies like Amur Equipment Finance, Quality Equipment Finance, and Fundr.

Addressing Both Sides of the Small Business Lending Ecosystem

Kaaj serves both lenders and brokers, who together represent the vast majority of small business financing activity. For lenders, the platform enables profitable scaling without proportional headcount growth, allowing a team processing 500 applications monthly to handle 2,000 applications with the same staff. For brokers, Kaaj adds intelligent lender matching capabilities, routing deals to the most appropriate financing sources.

“Time kills deals in small business lending,” said CEO and co-founder Utsav Shah. “When multiple lenders compete for the same quality borrowers, speed determines winners. Faster, more consistent decisions with clear data help brokers reduce administration time and focus on delivering bespoke advice and guidance for small businesses. For lenders, Kaaj speeds up the response time to minutes instead of days, demonstrably improving their approval-to-funding ratios so they don’t lose quality deals to competitors.”

By integrating with popular CRM systems like Salesforce, Microsoft Dynamics, HubSpot, Zoho, and more, Kaaj goes live in as little as three weeks.

Consistency and Transparency in an Inconsistent Industry

Beyond speed, Kaaj addresses a critical but often overlooked problem in commercial lending: inconsistency. Through behavioral studies shadowing credit underwriters, Kaaj’s team discovered that decision-making varies dramatically by factors such as time of day, workload, and day of week: an inconsistency that frustrates brokers and borrowers.

Every deal Kaaj analyzes receives the same comprehensive due diligence, regardless of external factors. This consistency improves decision quality while making the entire process more transparent and audit-ready, critical factors in today’s regulatory environment. The platform’s transparency is built into its architecture. Every data point, calculation, and insight is fully traceable and verifiable, ensuring lenders can demonstrate clear audit trails for regulators while maintaining full control over final lending decisions.

Investor Backing

“Small business lending has long struggled with a fundamental economics problem, the cost to underwrite smaller loans hasn’t matched the returns, leaving millions of businesses underserved,” said Kanyi Maqubela, Managing Partner, Kindred Ventures. “Kaaj is solving this by fundamentally changing the unit economics of SMB lending through intelligent automation. The platform doesn’t just incrementally improve efficiency; it unlocks an entirely new category of profitable lending that was previously inaccessible.”

“We’re backing a team with the rare combination of deep AI expertise and domain knowledge in credit risk to build the infrastructure that will power the next generation of small business finance,” said Jake Gibson, Founding Partner, Better Tomorrow Ventures.

“What impressed us most was Kaaj’s approach to building transparent, audit-ready AI that enhances rather than replaces human judgment,” said Sheel Mohnot Co-Founder & General Partner at Better Tomorrow Ventures. “In an industry where consistency and compliance are paramount, this is exactly the kind of infrastructure innovation that expands access to financial services for underserved communities.”

About Kaaj

Kaaj is an agentic AI credit intelligence platform that automates small business loan underwriting from application to decision-ready analysis. The San Francisco-based company integrates seamlessly with existing loan origination systems, enabling lenders and brokers to scale efficiently while maintaining consistency and transparency. Kaaj’s mission is to expand access to affordable capital for all small businesses by empowering lenders with best-in-class technology.

For more information, visit https://kaaj.ai/

Contacts

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