As part of its continuing Series D fundraising round, private equity company Advent International has contributed another $100 million to the fintech platform KreditBee, making it the first significant main funding round of 2023.
In December, KreditBee received $80 million from its current investors, including Mirae Asset Ventures, Motilal Oswal Alternates, Premji Invest, and NewQuest Capital Partners, funded by TPG. The value at which KreditBee raised the additional cash was not made public.On January 6, the additional funds will be utilized to expand KreditBee’s current operations and extend its product line by introducing digitally connected financial solutions.
According to the business, the platform will reach $1 billion in assets under management (AUM) over the next six to nine months.According to Madhusudan Ekambaram, co-founder and CEO of KreditBee, “the most recent round will assist us to realize our ambition of serving over 400 million middle-income population in the country.”
Non-banking financial firms
Through its partner non-banking financial firms (NBFCs), such as IIFL Finance, Northern Arc Capital, Vivriti Capital, Poonawala Fincorp, PayU Finance, and Piramal Finance, among others, the platform enables personal loan disbursals of up to Rs 4 lakh to salaried individuals in their field.
Additionally, the business has its own internal NBFC Krazybee Services. They are registered with the RBI, and lends to site users.
The company also provides digital gold and checkout finance solutions and personal loans. There are already six million loan clients on the site, of which two million are active users.
A further $100 million was added to KreditBee’s Series D round of funding from the private equity company Advent International. The business has raised $180 million in the last two months using this.
As well as current investors Premji Invest, Motilal Oswal Alternates, NewQuest Capital Partners, and Mirae Asset, KreditBee secured $80 million from Mitsubishi UFJ Financial Group (MUFG), the largest bank in Japan, in the first round of funding in December.
The firm offers credit and other personal finance needs through Krazybee Services Private Limited, an independent non-bank financial company, and alliances with more than ten other financial institutions.
In the upcoming 6 to 9 months, the platform is expected to manage more than $1 billion in assets, according to KreditBee.
Over 3 million KreditBee’s 7 million loan clients are said to be actively using the service.
It is in direct competition with Sachin Bansal’s Navi, MoneyTap, EarlySalary, and LazyPay.The firm completed three investment rounds totaling $2 million, with the most recent one taking place in April 2022.
