Fintechsaid it has raised $80 million as part of its Series D investment round from new investor MUFG Bank, and existing investors such as Azim Premji’s Premji Invest, Motilal Oswal Alternates, TPG-backed NewQuest Capital, and Mirae Asset Ventures.
The company said it will use the fresh capital to diversify its product portfolio and strengthen its tech stack.
KreditBee’s parent company, Finnovation Tech Solutions, reported a loss of Rs 84.9 crore in FY22, up from Rs 78.2 crore in the previous year, its filings with the Registrar of Companies (RoC) showed, as expenses nearly doubled. Its revenue rose 2.7X to Rs 445.4 crore over the same period.
“The investment adds more weight to our vision of encouraging financial independence through a smart digital experience, which is what India stands for today,” said Madhusudan E, Co-founder and CEO of KreditBee, in a press statement.
Bengaluru-based KreditBee, founded in May 2018, is a fintech lending platform that provides loans to professionals, as well as check-out finance to consumers.
The startup said wants to expand into offering digitally-enabled secured loans, home loans, and credit lines, as well as introduce financial services such as insurance, credit score report, and solutions for merchants.
KreditBee had earlier raised around $75 million in its Series C funding round, which it said it would use to provide loan services to more than 180 million new customers.
With the Reserve Bank of India’s digital lending guidelines having come into force from December 1, many startups of KreditBee’s ilk have had to rethink their business models or at least modify their operations to comply with the law.
YourStory, citing a highly placed source in the industry, reported that the RBI may consider creating more regulation around the way companies like KreditBee, LazyPay, Simpl, Flexmoney, etc., underwrite loans.
KreditBee, in its latest filing, said it is “well-positioned” to cross $1 billion-plus of assets under management over the next six to nine months.
Edited by Megha Reddy