Indian fintech KreditBee nears $700m valuation in new funding

Indian fintech KreditBee has raised another $100 million in a funding round, he said, as the lender seeks to expand its business in the South Asian market.

The new cash injection is part of the larger Series D funding, which KreditBee says has now closed at $200 million. 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 among its backers, offers instant micro loans starting as low as $12 to new clients and credits 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 to extend credit to the vast majority of the population in the South Asian market.

Fintechs use modern underwriting systems to lend to customers and a maze of regulatory arbitrage – which is becoming increasingly narrow – to operate.

KreditBee is working with 10 banks and non-bank financial companies (NBFCs) to fund the loans, he said.

“We are delighted to welcome a long-term financial and strategic partner to Advent. This builds confidence in our profitable business model and its long-term sustainability. The latest cycle will help us achieve our vision of serving over 400 million middle-income people in the country,” said Madhusudan Ekambaram, co-founder and managing director of KreditBee, in a statement.

The startup said it is on track to grow its assets under management to more than $1 billion over the next six to nine months.

Its new funding comes at a time when deal flow activity has slowed significantly in India, with investors growing cautious about writing new checks and weighing their underwriting models after company valuations plummet. listed on the stock exchange.

“KreditBee has been through several credit cycles and has emerged stronger each time, reflecting the adaptability and resilience of its business model. With this investment, we reinforce our commitment to supporting KreditBee’s vision,” said Ashish Dave, managing director of Mirae Asset Venture Investments in India, in a statement.