The latest funding round has offered an exit to Chinese investors Shunwei Capital, Kunlun, and Xiaomi, which unitedly held about 40% share in KreditBee earlier
Fintech lending start-up, KreditBee, through its holding entity Finnov, has recently announced securing funds of USD 70 million in the second phase of its Series C funding round, co-led by Motilal Oswal Private Equity and TPG-supported NewQuest Capital Partners.
Reports have it that the latest transaction follows one of the recent funding rounds of Finnov, which in February this year raised USD 75 million from Alpine Capital, Mirae Asset Ventures, Azim Premji’s PremjiInvest, and Arkam Ventures.
Post the conclusion of the second phase, KreditBee’s overall financing from the round has totaled to USD 145 million, making it one of the largest funding tranches for an Indian lending enterprise ever since the outbreak of the Covid-19 pandemic.
It has been claimed that the fresh capital would be used to revamp its lending portfolio beyond unsecured personal loan offerings. KreditBee is weighing debuts into secured lending and other auxiliary services such as card-based lending and insurance to small businesses and individuals.
CEO at Finnov, Madhusudan E., in a statement mentioned that a complex demography like India calls in for effective and simple yet impactful lending solutions that come with a comprehensive understanding of consumer financing needs of the ecosystem.
Furthermore, Vishal Tulsyan, CEO at Motilal Oswal Pvt. Equity, stated that the decision of investing in the startup was based on KreditBee’s sound unit scalable and economics model. He added that with sustained emphasis and momentum, their firm sees the platform becoming a leading fintech lending solution in the Asian market.
As per credible reports, the move comes at a time of border tiff between India and China, and alleged malpractices by various short-tenure loan applications in this segment have led to a restriction by Indian watchdogs on money lending apps and platforms by Chinese investors.