Indian fintech lender KreditBee boosts record Series C with extra $70m
KreditBee, a Bengaluru-based digital lending platform, has landed another $70 million in a Series C follow-on round.
Having already raised $75 million in February through its holding entity, Finnov, KreditBee has raised a total Series C of $145 million.
Indian outlet The Tech Portal dubs the Series C “one of the largest funding rounds for an Indian lending start-up since the onset of the pandemic”.
TPG-backed NewQuest Capital Partners and Motilal Oswal Private Equity co-led the $70 million capital injection.
They join initial Series C investors Mirae Asset Ventures, Alpine Capital, Indian business tycoon Azim Premji’s PremjiInvest, and Arkam Ventures.
Chinese investors drop out
KreditBee’s fresh funding also saw the exit of Finnov’s Chinese investors, Shunwei Capital and Xiaomi.
Back in 2017, the two had invested $8 million into the start-up’s Series A round.
The departure of Chinese investors from Indian start-ups has been happening across the board.
Social networking service Koo saw its Chinese investors – which also included Shunwei Capital – leave its portfolio. Just as Zomato’s Chinese investors decided to exit their investments too.
Relations between India and China have been worsening in the last year, as a number of Chinese apps – including TikTok – have ceased operation in the region.
A popular market
KreditBee’s round arrives amid a wave of interest and investment in India’s alternative lending market. A Boston Consulting Group and Federation of Indian Chambers of Commerce and Industry (FICCI) report said the sector will enjoy investments of up to $5.6 billion between 2021 to 2025.
KreditBee allows non-banking financial companies (NBFCs) – as well as banks – to lend to retail borrowers. Loans cover two-to-15 months.
It intends to use the fresh funding to expand beyond unsecured personal loans.
“Solutions under evaluation include secured lending products. As well as the democratisation of other auxiliary products and services around loans, like insurance and cards,” it says in a press release.
Launched in May 2018, the start-up is one of the largest of its kind. It claims 25 million customers, and employs some 1,200 people.
“The requirements of the average value-seeking middle class Indian can only be met by a multitude of lending products,” says Amit Gupta, NewQuest Capital Partners’ founding partner.
“One size doesn’t fit all. We are excited to become a shareholder of Finnov at this juncture and to support its next stage of development in offering innovative lending solutions to the dynamic India market.”