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Wednesday, February 28, 2024

Indian fintech KreditBee gets $100M more to expand South Asia operations

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KreditBee has secured an extra $100 million in a capital round. The fresh financial injection is part of the an Indian fintech’s bigger Series D fundraising, which has now closed at $200 million.

Indian fintech, KreditBee, has secured an extra $100 million in a capital round as it tries to expand its operations in the South Asian market.

The fresh financial injection is part of KreditBee’s bigger Series D fundraising, which has now closed at $200 million. According to a person familiar with the subject, the fresh capital, spearheaded by Advent International, values the Bengaluru-based business at over $680 million.

KreditBee, which is backed by Mirae Asset Venture Investments, Premiji Invest, and Mitsubishi UFJ Financial Group, provides new-to-credit clients with fast micro loans starting at $12 and salaried professionals with credit of up to $3,500. The firm hopes to service India’s 400 million new-to-credit clients.

The credit bureau data book in India is limited, making it difficult for banks and other financial institutions to gain trust in extending credit to the great majority of the South Asian market’s population.

Fintechs operate using modern-day underwriting algorithms and a maze of regulatory arbitrage that is becoming increasingly narrow. KreditBee stated it works with 10 banks and non-banking financial organisations (NBFCs) to fund loans.

KreditBee co-founder and CEO, Madhusudan Ekambaram, stated “We are happy to welcome Advent as a long-term financial and strategic partner. This boosts our confidence in our lucrative company strategy and its long-term viability. The new round will assist us in meeting our goal of reaching over 400 million middle-income people in the country.”

The business claims it will have more than $1 billion in assets under management within the next six to nine months. Its fresh investment comes at a time when deal flow activity in India has slowed substantially as investors become wary of writing new checks and examine their underwriting processes as the values of publicly traded companies fall.

Ashish Dave, CEO of Mirae Asset Venture Investments in India, stated, “KreditBee has experienced numerous financial cycles and has come out stronger each time indicating adaptation and durability of its business strategy. With this investment, we are reaffirming our commitment to supporting KreditBee’s mission.”

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