Indian fintech KreditBee nears $700m valuation in new funding • TechCrunch
Indian fintech KreditBee has raised another $100 million in a funding round, it said, as the lender looks to scale its operations in the South Asian market.
The new cash infusion is part of the larger Series D financing, which KreditBee said has now closed at $200 million. The new funding, led by Advent International, values the Bengaluru-headquartered startup at around $680 million, according to a source familiar with the matter.
KreditBee, which also counts Mirae Asset Venture Investments, Premiji Invest and Mitsubishi UFJ Financial Group among its backers, offers instant microloans from as low as $12 to new credit customers and credit of over $3,500 to salaried professionals. The company says its hope is to serve the 400 million new credit customers in India.
India’s credit bureau data book is thin, making it difficult for banks and other financial institutions to build confidence in extending credit to the vast majority of the population in the South Asian market.
Fintechs use modern insurance systems to lend to customers and a maze of regulatory arbitrage – which is increasingly narrow – to operate.
KreditBee is partnering with 10 banks and non-banking financial companies (NBFCs) to finance the loans, it said.
“We are pleased to welcome a long-term financial and strategic partner in Advent. This strengthens confidence in our profitable business model and the long-term sustainability of it. The latest round will help us achieve our vision of serving over 400 million middle-income population in the country,” Madhusudan Ekambaram, co-founder and CEO of KreditBee, said in a statement.
The startup said it is on track to grow assets under management to over $1 billion in the next six to nine months.
The new funding comes at a time when dealflow activity has slowed dramatically in India as investors become wary of writing new checks and evaluate their underwriting models after valuations of listed firms fall.
“KreditBee has witnessed several credit cycles and has emerged stronger each time, reflecting the adaptability and robustness of its business model. With this investment, we strengthen our commitment to support KreditBee’s vision,” said Ashish Dave, CEO of Mirae Asset Venture Investments of India, in a statement.
