India SME invests INR 600 million in FinTech KreditBee

By Leandra Monteiro

India SME Investments has recently expanded its portfolio in the BFSI segment by infusing a capital of ₹ 600 million into the holding entity of KreditBee. The investment comes in the form of both equity & debt. This round is a follow-up tranche of investment from India SME after having invested ₹ 284 million in September 2019 as debt in Krazybee Services Private Limited, the RBI-backed NBFC-ND-SI which is a part of the holding company of KreditBee.

The investment news comes in the footsteps of a recent round raised by the holding group entity of KreditBee from marquee investors like Premji Invest, TPG-backed NewQuest Capital Partners, Motilal Oswal Private Equity, Mirae Asset Ventures and Alpine Capital. KreditBee is a FinTech lending platform focused on providing financial inclusion in India via digital lending solutions in the form of Personal Loans. The platform looks to expand its lending portfolio by introducing financial services like BNPL (Buy-Now-Pay-Later) and Insurance, among others.

SIDBI backed India SME Investments focuses on investing in early-growth companies, primarily based out of and operating in Tier 2/3 cities, targeting the lower and middle-class segment and benefiting from changing consumer preferences. Its other investments include Citykart (a value-retailer in UP and Bihar), Kushal’s (an Indian fashion jewellery brand) and snacking company Priniti.

India SME has been associated with KreditBee for more than 24 months, and believes that the team has deep rooted understanding of the FinTech space, wherein it has scaled its business by more than 5x on the back of seasoned credit analytics, optimal control on CAC and prudent product selection.