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Indian fintech KreditBee has raised an additional $100 million in a funding round, the lender said, as it seeks to boost its business in the South Asian market.
The new round of funding is part of the largest Series D round of funding, now closed at $200 million, according to KreditBee. The new funding, led by Advent International, values the Bengaluru-headquartered startup at around $680 million, a source familiar with the matter said.
KreditBee, which also counts Mirae Asset Venture Investments, Premiji Invest and Mitsubishi UFJ Financial Group among its backers, offers quick microloans starting at $12 to new borrowers and over $3,500 in credit to salaried professionals.
India’s credit bureau database is thin, leaving most individuals in the South Asian market ineligible for credit. Fintechs use today’s underwriting systems and regulatory arbitrage – increasingly closed – to make loans to customers.
KreditBee said it will work with 10 banks and non-banking finance companies (NBFCs) to fund the loan.
“We are delighted to welcome a long-term financial and strategic partner in Advent. This reinforces confidence in our profitable business model and long-term sustainability. The latest round will help us achieve our vision of serving over 400 million middle-income people in the country,” CreditB Founder and CEO Madhusudan Ekambaram said in a statement. .
The startup said it is on track to cross $1 billion in assets under management in the next six to nine months.
The new funding comes at a time when deal flow activity has slowed sharply in India as investors are wary of writing new checks and valuations of publicly listed companies have been slashed.
“KreditBee has seen several credit cycles and has grown stronger each time, reflecting the flexibility and resilience of its business model. With this investment, we are strengthening our commitment to support CreditBee’s vision,” said Ashish Dev, CEO of Mere Properties Venture Investments in India, in a statement.
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