Indian fintech KreditBee has raised an extra $100 million in a funding spherical, it mentioned, because the lender appears to be like to scale its enterprise within the South Asian market.
The brand new money infusion is a part of the bigger Sequence D funding, which KreditBee mentioned has now closed at $200 million. The brand new funding, led by Creation Worldwide, values the Bengaluru-headquartered startup at about $680 million, in accordance with a supply accustomed to the matter.
KreditBee, which additionally counts Mirae Asset Enterprise Investments, Premiji Make investments and Mitsubishi UFJ Monetary Group amongst its backers, affords on the spot micro loans beginning at as little as $12 to new-to-credit prospects and credit score of over $3,500 to salaried professionals.
India’s credit score bureau information guide is skinny, making most people within the South Asian market unworthy of credit score. Fintechs use modern-age underwriting methods to lend to prospects and a maze of regulatory arbitrage — more and more getting closed — to function.
KreditBee works with 10 banks and non-banking monetary corporations (NBFCs) to finance the loans, it mentioned.
“We’re delighted to welcome a long-term monetary and strategic associate in Creation. This reinforces the arrogance in our worthwhile enterprise mannequin and the long-term sustainability of it. The newest spherical will assist us to realize our imaginative and prescient of serving over 400 million center earnings inhabitants within the nation,” mentioned Madhusudan Ekambaram, co-founder and chief govt of KreditBee, in a press release.
The startup mentioned it’s on monitor to bulk its asset beneath administration to over $1 billion within the subsequent six to 9 months.
Its new funding comes at a time when the dealflow exercise has slowed down dramatically in India as buyers develop cautious of writing new checks and consider their underwriting fashions after valuations of publicly listed companies take a tumble.
“KreditBee has witnessed a number of credit score cycles and has come out stronger every time reflecting adaptability and resilience of its enterprise mannequin. With this funding, we’re strengthening our dedication to again KreditBee’s imaginative and prescient,” mentioned Ashish Dave, chief govt of Mirae Asset Enterprise Investments in India, in a press release.