Fintech startup KreditBee closes the second tranche of the D series

KreditBee raises USD 200 million for fintech platforms on Friday, and in an extension of the Series D round, raised an additional USD 100 million in seed funding from Advent International (“Advent”), one of the world’s largest and most experienced private equity investors. Last month, the company had raised Tranche one of Series D from Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, along with existing investors Premji Invest, Motilal Oswal Alternates, NewQuest Capital Partners and Mirae Asset Venture Investments. Avendus Capital acted as exclusive financial advisor to KreditBee in the transaction.

The additional capital raised will be used to scale the existing business and diversify the product offering by focusing on digitally enabled financial products. The company services credit and other personal finance requirements through its in-house RBI registered NBFC – Krazybee Services Private Limited (systemically important NBFC) along with partnerships with over 10 reputed financial institutions. The platform is on track to surpass USD 1 billion AUM in the next 6-9 months.

Announcing the fundraising, Madhusudan Ekambaram, co-founder and CEO of KreditBee, said, “We are delighted to welcome a long-term financial and strategic partner in Advent. This reinforces confidence in our profitable business model and its long-term sustainability. The latest round will help us achieve our vision of serving over 400 million middle-income people in the country.”

Shweta Jalan, Managing Partner at Advent International, added: “We believe KreditBee’s proprietary underwriting tech stack is one of the best in the industry and aids in its ability to identify and underwrite future prime clients at an early stage. We are excited this partnership and to help KreditBee drive further value creation in the next phase of sustainable growth.”

Gagan Joshi, Director at Advent International, said: “We are excited about the digital lending opportunity in India, a rapidly growing under-penetrated space, which only a handful of FinTechs like KreditBee have been able to profitably crack. We look forward to supporting Madhu and his team in creating a full-service fintech platform to help meet India’s credit needs.”

Ashish Dave, Managing Director, Mirae Asset Venture Investments, said: “KreditBee has witnessed several credit cycles and has emerged stronger each time, reflecting the adaptability and robustness of its business model. With this investment, we strengthen our commitment to support KreditBee’s vision .”

Pankaj Naik, Managing Director and Co-Head, Digital & Technology Investment Banking at Avendus Capital said: “We are delighted to have partnered with Madhu and KreditBee. This new funding will help KreditBee consolidate its position as a strong leader in personal digital loan market. The current round is a reflection of companies with attractive margin profiles that address a large market opportunity in all market conditions continuing to deliver exceptional results.”