[Funding] KreditBee secures USD 75 Million Series C Funding from Premji Invest and others

FinTech startup KreditBee has recently concluded its Series C equity round of $75 Million from Premji Invest. Mirae Asset Naver Asia Growth Fund, Alpine Capital and Arkam Ventures also participates in primary and secondary investment. The company aims to use the fund to support the company in its effort to fuel financial inclusion. It further aims to drive credit uptake in the economy especially for the unserved and underserved segment of the population. The holding entity has previously raised over $43 Million cumulatively in equity from marque investors. These include ICICI Bank and Arkam Ventures. Further, the company has raised debt from various large-scale and small private sector banks in India.

Talking about the funding, Madhusudan E, Co-Founder & CEO of KreditBee stated that, “We started with a dream to help the unserved and underserved segment. They have always found it difficult to enter the formal lending sector; either due to lengthy offline processes or traditional underwriting methods. With a larger portfolio of loan products, our objective is to provide credit to over 180 Million New-to-Credit customers who were not provided formal credit earlier. This investment would help us take more positive steps towards achieving that.”

Read More: CxO of the Week: Madhusudan Ekambaram, CEO, Kredit Bee

From the leaders

Talking about the equity investment, Atul Gupta, Partner at Premji Invest mentioned, “We are impressed by the vision of KreditBee to formalize the path towards credit enablement for new-to-credit customers, their skilled team and responsible tech-enabled underwriting, and are pleased to partner with them in their next stage of growth.”

On the other hand, Ashish Dave, CEO at Mirae Asset Venture Investments (India) mentioned, “The large scale at which the platform can disburse loans to customers showcases the stability and strength of its tech stack. It is also a very appropriate credit scoring of customers using alternative data points, which forms a key for new-to-credit customers.”

The company has digitized the entire underwriting process which can be owed to the massive use of AI/ML in the assessment of a user. KreditBee runs each user through multiple policy rules before finally approving a loan for the first-time borrower on the platform. Along with the algorithms, their internally developed five different proprietary scorecards have helped the company to substantially reduce the risk related to a customer. Combined with the superior underwriting principles, the use of technology and innovation in collections has led to lower delinquencies which are below the industry average.