Indian fintech KreditBee nears valuation of $700 million in new funding • Alaska Green Light Blog
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Indian fintech KreditBee has raised an additional $100 million in a funding round as the lender looks to expand its business in the South Asian market.
The new cash injection is part of the larger Series D funding, which has now closed for $200 million, according to KreditBee. The new funding, led by Advent International, values the Bangalore-headquartered startup at approximately $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 microloans starting at US$12 to new borrowers and over US$3,500 to hired professionals.
Indian credit bureaus’ data book is thin, making most individuals in the South Asian market uncreditworthy. Fintechs use modern underwriting systems to lend to clients and a maze of regulatory arbitrage – which is increasingly closing – to operate.
KreditBee is working with 10 banks and non-bank financial companies (NBFCs) to fund the loans, it said.
“We are pleased to welcome a long-term financial and strategic partner to Advent. This strengthens confidence in our profitable business model and its long-term viability. The latest round 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.
The startup said it is on track to grow its assets under management to over $1 billion in the next six to nine months.
The new funding comes at a time when deal-flow activity in India has slowed dramatically as investors become more cautious about writing new checks and evaluating their underwriting models after the valuations of listed companies plummet.
“KreditBee has endured multiple credit cycles and has emerged stronger from each, reflecting the adaptability and resilience of its business model. With this investment, we are strengthening our commitment to supporting KreditBee’s vision,” said Ashish Dave, chief executive of Mirae Asset Venture Investments in India, in a statement.