Bangalore, India / Beijing, China, October 16 – India-based e-commerce and credit department KrazyBee receives $ 8 million Series A funding led by Chinese phone maker Xiaomi and Shunwei Capital. In 2016, KrazyBee went through two Seed Rounds, one of which was worth $ 2 million by Chinese companies Yeahmobi and Fenqile as well as another $ 3 million round from Plum Ventures, also based in China.
These kinds of investments could be linked to the connections of KrazyBee co-founder Wan Hong, who previously worked for Huawei since 2005 and had been in India since 2010. According to his LinkedIn description, it is there to bridge the gap between Chinese business models and the Indian market.
What is KrazyBee so crazy about?
KrazyBee was founded in 2016 and their stated mission is to help young people, especially college and university students, buy things they want, but don’t have the money for, by loaning them money. money with credit. The credibility of the users will be checked, then they will have access to the KrazyBee online store, which includes consumer electronics such as smartphones, headphones. Cameras, tablets, laptops and televisions.
The loan system also works with third parties like Amazon, Flipkart, Snapdeal, Paytm, Healthkart and others. On the KrazyBee page for terms and conditions, they also refer to a Finnovation Tech Solutions Private Limited as a legal entity providing services.
Why might this be of interest to Xiaomi?
There are not a lot of facts available for the long term reasons of investing. We are missing press releases from both sides of the deal. Xiaomi may want to integrate the KrazyBee system for financial transactions as an app in its own smartphones and operating systems. It could also be that they are simply looking to invest in a disruptive startup and break into the markets for simple ROI reasons.
Based on the information available, we cannot say that it could be an attack on AliPay from other FinTech companies in China or India. At the very least, they can increase their brand’s visibility on the KrazyBee store with the newly gained influence.
âKrazyBee’s mission is to make credit for young professionals and students in India accessible and affordable. We are actively working on a risk algorithm that helps us make a system-generated decision on each profile, and we further optimize it in terms of efficiency and accuracy â, noted Madhusudan E, founder and CEO of KrazyBee, which has three lakhs of registered users and 50,000 active borrowers.
âIndia’s demographics have a large population of urban young adults who spend a lot online and offline. For such a huge ecosystem, the urgent need for personal finance for purchasing needs is grossly underserved. An appropriate focus on technology-based credit assessment and compliant fundraising can help capture and penetrate this market at scale â, noted Shirley Mao, Director of Investments, Xiaomi Technologies at KrazyBee, which operates at 800 colleges in India.
YouTube: KrazyBee – India’s Largest Student Credit Platform
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