KreditBee parent raises follow-on funding from Motilal Oswal PE, TPG-backed NewQuest

By Narinder Kapur

  • 22 Mar 2021
Credit: 123RF.com

The holding entity of fintech firms KreditBee and Krazybee Services has raised $70 million (around Rs 506.7 crore) in follow-on funding just a month after Series C fundraise. 

Bengaluru-based Finnovation Tech Solutions Pvt Ltd has raised capital from NewQuest Capital Partners, a TPG-backed Asia-Pacific-focused secondaries private equity platform, and Motilal Oswal Private Equity

While KreditBee focuses on consumer lending, Krazybee is a non-deposit-taking non-banking company that has raised debt capital from entities including ICICI Bank, AU Small Finance Bank, and Bank of Baroda. 

Some of the solutions the firms’ parent company is evaluating include secured products and auxiliary services such as insurance and cards. 

“We are keen on businesses that are scalable and yet built on sound unit economics, and KreditBee ticked all the boxes. With the sustained focus and momentum, we see the platform becoming a mainstream fintech lending solution in the Asian market,” Motilal Oswal Private Equity CEO and MD Vishal Tulsyan said. 

Last month, KreditBee raised $75 million (about Rs 544 crore) in its Series C round from a clutch of investors including PremjiInvest, Mirae Asset Naver Asia Growth Fund, Alpine Capital, and Arkam Ventures. 

At the time of the fundraise, people told VCCircle that China’s Xiaomi had exited the company, while Shunwei Capital had pared stake. Shunwei has exited another portfolio company which runs Twitter rival Koo and vernacular knowledge-sharing app Vokal. 

Prior to its Series C fundraise, Finnovation had raised over $43 million (about Rs 312 crore) in equity financing from investors including Arkam and ICICI Bank. 

In October 2017, Krazybee raised $8 million (about Rs 58 crore) in its Series A funding round led by Xiaomi and Shunwei Capital. Other participants in that round included RK Group and E-City Ventures, which is part of Essel Group.