Bengaluru-based microlending platform KrazyBee, primarily focused towards purchase finance, has raised $8 million in its Series-A funding round led by Chinese smartphone-maker Xiaomi Technologies and Shunwei Capital.
Last month, the two Chinese companies were in talks to invest $15 million in the local language social networking app ShareChat in its series-B funding.
The funding round also saw participation from RK Group and E-city Ventures, a part of Essel Group in a mixed round of equity and debt financing, reported Yourstory.
The latest round of funding will be used to strengthen the risk model and algorithm, catering to new market segments and focusing on product diversification and geographical expansion in existing segments.
Founded in 2015 by Wan Hong and Madhusudan, KrazyBee’s current portfolio includes e-commerce purchase, cash credit, two-wheeler credit, college semester/ tuition fees credit among others.
“We are actively working towards a risk algorithm that helps us achieve a system-generated decision on every profile, and we are optimizing that further in terms of efficiency & accuracy. Also, being in the Fintech space, compliance is the key and hence we follow all the regulations very strictly,” said KrazyBee Founder and CEO Madhusudan.
The micro-lending platform that got an NBFC (Non-Banking Financial Corporation) license from Reserve Bank of India is currently operating across Bangalore, Hyderabad, Pune, Mysore and Vellore and has recently expanded to Mumbai, Chennai, Coimbatore, Nagpur, Nashik, and Manipal.
The company claims to have more than three lakh registered users, of which over 50,000 active confirmed users regularly use the platform.
KrazyBee till date has received a total funding of $13 million that includes a Seed Fund of $2 million and Pre-Series A funding of $3 million.
Chinese phone-making giant Xiaomi had made its first investment in India last year, leading a $25 million funding round into Hungama Digital Media Entertainment, an aggregator and publisher of entertainment content on the internet.
Xiaomi is bullish on the Indian internet market where it has emerged as the frontrunner in the smartphone space. Besides, it is going to redefine the Indian market with a steep revenue of $2 billion it plans to generate this year, twice the amount from 2016.
The company is planning to replicate its China model in India by aiming to emerge as an internet company through monetising services such as finance and entertainment.