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As its people across the board are reeling under Covid-inflicted economic impact, Bengaluru-headquartered fintech lending startup KreditBee is finding it the appropriate time for strengthening its presence.

As part of the effort, the company is strengthening its financial muscle by raising a follow on Series C equity round of $70 million from TPG-backed NewQuest and Motilal Oswal Private Equity. The company also recently raised Series C equity round worth $75 million from investors led by Premji Invest. The move comes with the company’s cumulative fundraising of over $43 million.

KreditBee Cofounder and CEO Madhusudan Ekambaram

The Series C round is funded by Premji Invest, Mirae Asset Naver Asia Growth Fund, Alpine Capital and Arkam Ventures. TPG-backed NewQuest Capital Partners and Motilal Oswal Private Equity also participated in the round. These investments consist of both primary and secondary investment.

Credit hunters

KreditBee made strides among the prospective credit hunters as the platform specialises in personal loans and consumer durables loans up to Rs 2 lakh with tenures ranging from two months to 15 months.

In a press release issued by MreditBee states that with the new
capital influx, the entity looks to scale up its lending portfolio beyond personal loans into other lending products, value-added services, deeper channel integrations and partnerships.

Finnov Softwares Services Private Limited, the holding company of KreditBee, incorporated in 2016 is primarily focussing on providing technical and business solutions to the financial institutions and their associates.

The company’s leadership of the company include CEO Umesh Sinha, Technology head Manish Mishra, Strategy and Planning head  Sanjay Kumar and advisor and Neeraj Chauhan.

Expressing happiness over the company’s growth, KreditBee Cofounder and CEO Madhusudan said the company started with a dream to help the unserved and underserved segment who have always found it difficult to enter the formal lending sector, either due to lengthy offline processes or traditional underwriting methods.

Loan products

“With a larger portfolio of loan products, our objective is to provide credit to over 180 Million New-to-Credit customers who were not provided formal credit earlier. This investment would help us take more positive steps towards achieving that,” said Madhusudan.

It is interesting to note that, the Series C round also witnessed exit of Chinese investors, who previously held around 40% of the startup. The Chinese investors included smartphone maker Xiaomi, Shunwei Capital and Kunlun.

It is interesting to note that the Indian micro lending landscape is crowded by established financial players like private and public sector lenders, BFSI and microfinance institutions. But the newfound financial tech companies like MoneyTap, EarlySalary and Sachin Bansal’s Navi are also making an impact in this space along with KreditBee.

Equity investors

The holding entity has previously raised over $43 million cumulatively in equity from marque investors including ICICI Bank and Arkam Ventures.

Expressing happiness on engaging with KreditBee’s larger game plan, Premji Invest Partner Atul Gupta said Premji Invest is impressed by the vision of KreditBee.

“Their focus to formalise the path towards credit enablement for new-to-credit customers and their skilled team and responsible tech-enabled underwriting make us happy to partner with them in their next stage of growth,” said Atul Gupta.

Tech stack

Mirae Asset Venture Investments (India) CEO Ashish Dave said the company succeeded in disbursing loans to customers on a large scale.

“It showcases not just the stability and strength of its tech stack, but also a very appropriate credit scoring of customers using alternative data points, which forms a key for new-to-credit customers,” said Ashish Dave.

Finnov Softwares Services Private Limited launched KreditBee in May 2018 and specialises in providing digital personal loans and consumer durable loans to both salaried and self-employed. According to sources, KreditBee is on an aggressive mode to diversify its product offering by venturing into digitally-enabled secured loans, home loans and credit line.


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