Fintech startup KreditBee, on Friday announced that it has raised $80 million as part of its ongoing Series D round from existing investors Azim Premji’s Premji Invest, Motilal Oswal Alternates, TPG-backed NewQuest Capital Partners, and Mirae Asset Ventures. The round also saw participation from Japan's largest bank, MUFG Bank.
The Bengaluru-based company will use the funds to diversify KreditBee’s product portfolio and strengthen its tech stack to cater to over 400 million people residing in India, on its platform, it said in a release.
VCCircle reported about the development in June.
“With the current round, we look forward to expanding our set of solutions to serve our growing consumer base,” said Madhusudan E, co-founder and chief executive, KreditBee.
“The investment adds more weight to our vision of encouraging financial independence through a smart digital experience,” he added.
Founded in 2016, KreditBee offers credit and other personal finance services through its registered non-banking financial company, Krazybee Services Pvt. Ltd.
The NBFC company has partnered with over 10 financial institutions to provide credit to its customers.
The company offers multiple types of personal loans, online/offline checkout finance and digital gold. Borrowers can apply for a personal loan starting from Rs 1,000- Rs 4 lakh as per their requirement with tenures ranging from 2 to 15 months. The company claims that it has 6 million loan customers, out of which over 2 million are active loan customers.
It is planning to diversify its product offering by venturing into digitally-enabled secured loans, home loans and credit lines.
The plans include expanding its lending portfolio by introducing financial services like insurance, credit score report, and merchant-side offers, among others. It is also targeting to cross an asset under management of more than $1 billion over the next 6 to 9 months.
“We believe KreditBee is India’s largest and most profitable lending fintech. The company is solving credit needs of the growing and aspirational, yet underserved middle-income consumer of ‘Bharat’ through an innovative platform,” said Vinit Mehta, director and head of banking, financial services and insurance (BFSI) at MO Alternate Investment Advisors.
Prior to this round, the holding entity of fintech firms KreditBee and Krazybee Services – Finnovation Tech Solutions Pvt. Ltd -- raised $70 million (around Rs 506.7 crore) in funding in March last year. In early 2021, the parent firm had 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.
While KreditBee is targeted more towards salaried and self-employed professionals, KrazyBee is targeted at college-going students.