KreditBee funding: KreditBee raises $120 million funding in new tranche from Advent International, others

US-based private equity giant Advent International has invested $100 million in this tranche while others have put in an additional $20 million, the Bengaluru-based company said.

This makes it one of the largest capital infusion rounds the Indian startup industry has seen amid the ongoing funding crunch.

“We are delighted to welcome a long-term financial and strategic partner in Advent,” said Madhusudan Ekambaram, cofounder of KreditBee. “This reinforces the confidence in our profitable business model and the long-term sustainability of it.”

KreditBee did not comment on its valuation but a person aware of the matter said it is around $680 million.

The company said it will use the new capital to scale its business and diversify its product offering by venturing into digitally-enabled financial products.

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KreditBee is also planning to use the new capital to diversify its product portfolio into small and medium enterprise (SME) lending, as well as to provide motor and vehicle loans. It plans to enter the SME lending space this year.

ET had reported in September that Advent International was in talks to pick a stake in KreditBee.

In December,
KreditBee had said it raised $80 million from existing investors Premji Invest, Motilal Oswal Alternates, TPG-backed NewQuest Capital Partners, and Mirae Asset Ventures.

Last month, fintech startup
MoneyView had raised $75 million from investors led by Apis Partners.

These funding rounds have closed at a time when digital lending startups have come under scrutiny from the Reserve Bank of India (RBI),
which has introduced new rules to regulate online credit.

The RBI wants new-age lending businesses to focus on their non-bank units and capitalise them to meet its preference for regulated entities.

Started in 2018, KreditBee operates through its non-banking financial institution, KrazyBee, apart from partnerships with more than 10 other financial institutions.

The company is set to surpass $1 billion in assets under management (AUM) over the next 6-9 months, the company said in a statement.

Ekambaram, who is also the CEO, said the latest round will help KreditBee achieve its vision of serving more than 400 million middle-income people in the country.

He had told ET last month that KreditBee has 3.5 million active users. With over 7 million loan customers so far, the company provides personal loans of up to Rs 4 lakh to professionals.

“We believe KreditBee’s proprietary underwriting tech stack is one of the best in the industry and helps in its ability to identify and underwrite future prime customers at an early stage,” said Shweta Jalan, managing partner, Advent International.

Advent International has also
invested $175 million in data analytics company Tredence, another homegrown startup, as reported by ET on December 23. Advent has over 390 private equity investments across 41 countries and operates $75.9 billion of AUM as of FY22.

US-based private equity giant Advent International has invested $100 million in this tranche while others have put in an additional $20 million, the Bengaluru-based company said.

This makes it one of the largest capital infusion rounds the Indian startup industry has seen amid the ongoing funding crunch.

“We are delighted to welcome a long-term financial and strategic partner in Advent,” said Madhusudan Ekambaram, cofounder of KreditBee. “This reinforces the confidence in our profitable business model and the long-term sustainability of it.”

KreditBee did not comment on its valuation but a person aware of the matter said it is around $680 million.

The company said it will use the new capital to scale its business and diversify its product offering by venturing into digitally-enabled financial products.

Discover the stories of your interest

KreditBee is also planning to use the new capital to diversify its product portfolio into small and medium enterprise (SME) lending, as well as to provide motor and vehicle loans. It plans to enter the SME lending space this year.

ET had reported in September that Advent International was in talks to pick a stake in KreditBee.

In December,
KreditBee had said it raised $80 million from existing investors Premji Invest, Motilal Oswal Alternates, TPG-backed NewQuest Capital Partners, and Mirae Asset Ventures.

Last month, fintech startup
MoneyView had raised $75 million from investors led by Apis Partners.

These funding rounds have closed at a time when digital lending startups have come under scrutiny from the Reserve Bank of India (RBI),
which has introduced new rules to regulate online credit.

The RBI wants new-age lending businesses to focus on their non-bank units and capitalise them to meet its preference for regulated entities.

Started in 2018, KreditBee operates through its non-banking financial institution, KrazyBee, apart from partnerships with more than 10 other financial institutions.

The company is set to surpass $1 billion in assets under management (AUM) over the next 6-9 months, the company said in a statement.

Ekambaram, who is also the CEO, said the latest round will help KreditBee achieve its vision of serving more than 400 million middle-income people in the country.

He had told ET last month that KreditBee has 3.5 million active users. With over 7 million loan customers so far, the company provides personal loans of up to Rs 4 lakh to professionals.

“We believe KreditBee’s proprietary underwriting tech stack is one of the best in the industry and helps in its ability to identify and underwrite future prime customers at an early stage,” said Shweta Jalan, managing partner, Advent International.

Advent International has also
invested $175 million in data analytics company Tredence, another homegrown startup, as reported by ET on December 23. Advent has over 390 private equity investments across 41 countries and operates $75.9 billion of AUM as of FY22.