Indian fintech firm KreditBee has raised another $100 million in a funding round, the company said. The lender is looking to expand its business in the South Asian market.
The new cash injection is part of a larger Series D funding, currently closing at $200 million, according to KreditBee. The new funding, led by Advent International, values the Bengaluru-based 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 as backers, offers instant micro loans that offer credit starting at $12 for first-time credit customers and $3,500 or more for salaried workers. It offers.
India’s credit bureau databook is thin and most individuals in the South Asian market are not creditworthy. Fintech companies use modern underwriting systems to lend to customers and operate a labyrinth of regulatory arbitrage that is increasingly closed.
KreditBee is working with 10 banks and non-bank finance companies (NBFCs) to finance loans, the company said.
“We are delighted to welcome Advent as a long-term financial and strategic partner, which strengthens our confidence in our profitable business model and its long-term sustainability. It will help us achieve our vision of serving over 400 million middle-income people in the country,” said Madhusudan Ekambaram, co-founder and CEO of KreditBee, in a statement. I’m here.
The startup says it plans to grow to over $1 billion in assets under management in the next six to nine months.
Deal flow activity slowed dramatically in India as investors became cautious about writing new checks and evaluating underwriting models after valuations of listed companies plummeted. A new round of funding for the company has taken place.
“KreditBee has witnessed several credit cycles and each has been strong, reflecting the adaptability and resilience of its business model. We reinforce our commitment to backing our vision,” said Ashish Dave, chief executive officer of India’s Mirae Asset Venture Investments, in a statement.
