Exclusive: KrazyBee is raising Rs 100 Cr+ debt from Sachin Bansal’s BACQ and others

Students focused digital lending platform KrazyBee is onboarding a set of blue-chip investors on its cap table, said two sources aware of the development.

Sources emphasised that Sachin Bansal’s BAC Acquisitions, Unifi AIF, Trichur-based NBFCs - BRD Securities and Northern R Capital along with a couple of other investors are investing over Rs 100 crore debt in the Bengaluru-based firm.

While the exact amount to be injected by BAC Acquisitions isn’t ascertained independently by Entrackr, it’s likely to be in the range of Rs 15 to Rs 20 crore. “Unifi Alternative Investment Fund and Northern R Capital are putting in about Rs 50 crore together,” said the aforementioned sources on condition of anonymity.

Sources also outlined that the entire round is debt. According to them, BRD and AU Small Finance Bank would be investing around Rs 20 crore together. Telema Investments and Hinduja Leyland Finance are expected to contribute in the range of Rs 10-15 crore, added sources.

Entrackr had sent queries to Sachin Bansal and KrazyBee founder Madhusudan E . While Madhusudan confirmed the development, Bansal's response is awaited.

It’s worth noting that KrazyBee has also tweaked its business model. Previously, it used to finance education and allied fees for students but now it seems to be focusing only on mobile phone and gadgets such as laptops, cameras, and television sets among others.

Besides partnering with over half a dozen lenders such as IIFL, KrazyBee also has NBFC license that allows it to lend on its own. Since the upcoming Rs 100 crore plus fresh round is debt, it seems that the company plans to lend more on its own.

So far, KrazyBee has raised about $13 million in risk capital from the likes of Xiaomi and Shunwei Capital, Essel Group’s E-City Ventures and RK Group. The Madhusudhan E led venture has also been powering Xiaomi’s micro-lending platform CreditBee.

This is the first fintech investment for Bansal after establishing BAC Acquisitions in December 2018. He had set up the firm to acquire and place bets on startups focusing on agritech and fintech. Betting big on NBFCs, Bansal also invested Rs 500 crore via debt in Altico Capital and IndoStar Capital.

Currently, Bansal is in advanced stage to acquire 75 per cent stake in Chaitanya India Fin Credit (CIFCPL). He’s also in discussions with RBI’s officials regarding regulatory needs and the requirement to start a bank.