Indian fintech KreditBee has raised another $100 million in a funding round, it said, as the lender looks to scale its operations in the South Asian market.
The new cash injection is part of the larger Series D financing, which has now closed at $200 million, according to KreditBee. The new funding, led by Advent International, values the Bengaluru-headquartered 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 lenders, offers instant microloans as low as $12 to new credit customers and credits over $3,500 to paid professionals. The company hopes to serve the 400 million new customers in India.
India’s credit bureaus’ 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 customers and a maze of regulatory arbitrage – which is getting narrower – to operate.
KreditBee is partnering with 10 banks and non-bank financial companies (NBFCs) to fund the loans, it said.
“We are delighted to welcome a long-term financial and strategic partner to Advent. This reinforces confidence in our profitable business model and its long-term sustainability. The final round will help us achieve our vision of serving more than 400 million middle-income earners in the country,” Madhusudan Ekambaram, co-founder and CEO of KreditBee, said in a statement.
The startup said it is on track to increase its assets under management to more than $1 billion in the next six to nine months.
The new financing comes at a time when deal flow activity has slowed dramatically in India as investors become cautious about writing new checks and reevaluating their underwriting models after valuations of listed companies collapse.
“KreditBee has been through several credit cycles and each time has come out stronger due to the adaptability and resilience of its business model. With this investment, we reinforce our commitment to support KreditBee’s vision,” said Ashish Dave, CEO of Mirae Asset Venture Investments in India, in a statement.
