The current round is a follow-on investment tranche from the Indian SME after investing INR 28.4 crore in the form of debt in Kredtbee’s parent company.
KreditBee plans to use this funding to expand its loan portfolio by introducing financial services such as Buy-Now-Pay-Later and insurance.
KreditBee previously raised $ 145 million in its Series C funding round in March 2021, which was its biggest to date.
Private equity fund India SME Investments has invested INR 60Cr in the KreditBee ‘lending technology platform through a mix of equity and debt.
The current round is a follow-on investment tranche from the Indian SME after investing INR 28.4 crore in September 2019 as debt in Krazybee Services Private Limited, the holding company of Kredit Bee.
The private equity fund backed by SIDBI India SME Investments focuses on investing in early growth companies, primarily based in Tier 2 and Tier 3 cities, targeting the lower and middle class segment. Its other investments include Citykart, a value retailer based in UP and Bihar, and Kushal’s, a fashion jewelry brand, and snacking company Priniti.
KreditBee plans to use this funding to expand its loan portfolio by introducing financial services like BNPL (Buy-Now-Pay-Later) and insurance, among others.
KreditBee based in Bengaluru previously raised $ 145 million in its Series C funding round in March 2021, which included PremjiInvest from Azim Premji and Mirae Asset Venture from South Korea, Alpine Capital, NewQuest Capital Partners and Motilal Oswal Private Equity, and Arkam Ventures.
KreditBee had also raised $ 43 million in a funding round with ICICI Bank and Arkam Ventures in its Series B in 2020.
KreditBee’s Chinese investors including Xiaomi Corp, Shunwei Capital and Kunlun also had got out of the startup in its round table in March. The exit of Chinese investors was reported after the Execution Directorate (ED) and Criminal Investigation Departments (CID) of various state police forces began survey of more than two dozen applications which had Chinese managers.
Created in March 2016, Finnov operates KreditBee for digital loans as well as Krazybee, a non-bank finance company (NBFC). It specializes in personal loans and durable consumer loans up to INR 2 lakh with terms ranging from two months to 15 months. It claims to have a user base of over 20 million and will venture into secured loans and insurance products with the new round.
For the fiscal year ended March 2019 (FY19), Kreditbee’s holding company, Krazybee Services Pvt Ltd, reported an 18X increase in operating income to INR 57.87 Cr, compared to income of only INR 3.05 Cr generated during FY18, according to documents from the Registrar Of Companies. (Rock). In FY19, Krazybee reported a profit (after tax) of 8.3 Cr INR, compared to a loss of 1.21 Cr INR reported the previous year in FY18.