India-based Fintech startup KreditBee, a digital lending platform developed to assist young professionals with their personal finances, raised US$ 70 under its holding entity Finnov on 22 March 2021.
Investors: TPG-backed NewQuest Capital Partners and Motilal Oswal Private Equity participated in the round. The round concluded with the exit of most of the early-stage investors including Xiaomi, Shunwei and Kunlun Capital. Finnov had recently raised US$ 75 million from Marquee investors Premji Invest, Mirae Asset Ventures, Alpine Capital and Arkam Ventures.
Purpose of the funding: The funds raised will be utilized to increase KreditBee’s equity base on its balance sheet to further leverage debt capital and explore new areas like mutual funds-backed finance, gold finance and vehicle finance.
About KreditBee
Founded in 2018 by Karthikeyan Krishnaswamy, Madhusudan Ekambaram and Wan Hong, KreditBee facilitates the loan transactions between the borrowers and NBFCs/Banks. All the loan applications are approved and sanctioned by NBFCs/Banks registered with RBI and communicated upfront during Loan application. The company is headquartered in Bengaluru, India.
Some of the lending partners of KreditBee include Krazybee Services Private Limited, Usha Financial Services Private Limited, Incred Financial Services Limited, Vivriti Capital Private Limited, India Infoline Finance Limited, Fullerton India Credit Company Limited and Northern Arc Capital Limited among others.
The KreditBee Personal Loan Platform mainly focuses on providing loans to Young Professionals. The documentation is very minimal, and the entire process of registration to disbursement takes no more than 15 minutes. The application process is done online and cash is immediately transferred to the bank account of the user after approval. KreditBee offers an average credit of Rs 12,000 to self-employed users and Rs 25,000 to salaried people. The company claims to have more than 30 million registered users, and an active user base of 5 million people.
What the CEO had to say: “While concentrating on the salaried and self-employed user base, we will be looking at new-to-credit people who are around 200 million of the population. We have captured only 15 percent of such customers so far. In a credit lending business, if you think about how to collect the amount after you have given it out then you have got the model wrong. More than 85 percent of our users pay back on the due date, the rest 10-11 per cent comes in the next 90 days.” — Madhusudan E, co-founder & CEO of KreditBee’s holding group entity.
What the investors have to say: “The requirements of the average value-seeking middle class Indian can only be met by a multitude of lending products. One size doesn’t fit all. We are excited to become a shareholder of Finnov at this juncture and to support its next stage of development in offering innovative lending solutions to the dynamic India market.” — Amit Gupta, Founding Partner at NewQuest Capital Partners.
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