Indian fintech KreditBee has raised $100 million in a funding round to expand its business in South Asia.
KreditBee has closed its Series D funding at $200 million, led by Advent International. The Bengaluru-based startup is now valued at approximately $680 million, according to a source.
KreditBee, backed by Mirae Asset Venture Investments, Premiji Invest and Mitsubishi UFJ Financial Group, offers instant micro loans from just $12 to new-to-credit customers in India (400 million people) whilst providing credit of up to $3,500 for salaried professionals.
India’s credit bureau data is limited, making it hard for banks and other financial institutions to trust in extending credit to a majority of the population in South Asia.
Fintechs utilize modern underwriting systems to lend to customers and navigate a narrowing field of regulatory arbitrage.
KreditBee partners with 10 banks and NBFCs to finance loans.
“We’re thrilled to partner with Advent for long-term financial and strategic support, demonstrating confidence in our successful business model and future prospects,” said Madhusudan Ekambaram, co-founder and CEO of KreditBee. “This new round will help us reach our goal of serving 400 million middle income citizens in the country.”
The startup predicts its assets under management will exceed $1 billion in the next 6-9 months.
Its new funding arrives as dealflow activity in India has significantly decreased, with investors becoming more careful about committing capital and revising their underwriting strategies due to falling public company valuations.
“KreditBee has demonstrated its robustness through several credit cycles, and this investment bolsters our commitment to supporting their vision,” said Ashish Dave, CEO of Mirae Asset Venture Investments in India.
