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.
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.
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.
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.
“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.