Update: KreditBee on Friday announced that it has secured $80 million as a part of its ongoing Series D round from existing investors Azim Premji’s Premji Invest, Motilal Oswal Alternates, TPG-backed NewQuest Capital Partners, and Mirae Asset Ventures. The round also saw participation from MUFG Bank.
The funds will be used to diversify KreditBee’s product portfolio and strengthen its tech stack to serve more than 400 million middle India population on its platform, said the company in a press release.
Original story follows:
Digital lending platform KreditBee has initiated its Series D round with $20 million led by Premji Invest. This is the first round of investment for the Bengaluru-based company in 2022.
The board at KreditBee has passed a special resolution to issue 1,94,804 Series D preference shares at an issue price of Rs 8485.36 per share to raise Rs 165 crore or $20 million, regulatory filing filed with the registrar of companies shows.
Premji Invest Opportunities led the round with Rs 59 crore or $7.2 million while India Business Excellence Fund pumped in Rs 47 crore or $5.8 million. NewQuest Asia, Mirae Assets, and MUFG bank collectively participated with Rs 59 crore or $7.28 Mn in the round.
Following the proceeds, Premji Invest will hold 5.09% of the stake while IBEF, NewQuest Asia, Mirae Asset and MuFC bank will command 4.10%, 1.72%, 1.51%, and 1.86% of the capital in the company.
Led by Madhusudan E, KreditBee is a platform facilitating loan transactions between borrowers and NBFCs or banks. The company provides personal loans to young professionals in the range of Rs 10,000 to Rs 200,000 for a tenure of 2 to 15 months and at an interest rate of up to 2.49%.
The company, which has more than 6 million customers, also plans to diversify its product offering by introducing financial services like insurance, credit score report, and merchant-side offers, among others.
Before this, KreditBee closed its $145 million Series C round in March 2021. The company also said that it provided a complete exit to Chinese investors Xiaomi and Shunwei Capital during the last round. Xiaomi and Shunwei had invested around $8 million in KreditBee’s Series A round in 2017.
MoneyTap, EarlySalary, LazyPay, and Sachin Bansal’s Navi are some of the competitors of KreditBee.