The lender looks to scale its business in the South Asian market after raising an additional $100 million in funding.
The larger Series D funding has closed at $200 million. The startup is valued at about $680 million according to a source familiar with the matter.
Micro loans start at as low as $12 to new-to-credit customers and can be used for anything from CarRentals to CarRentals. 400 million new-to-credit customers are in India, and the company hopes to serve them.
India's credit bureau data book is thin, making it difficult for banks and other financial institutions to build confidence to extend credit to the majority of the population.
A maze of regulatory arbitrage, which is getting narrow, is one of the things that Fintechs use to lend to customers.
The company works with 10 banks and NBFCs to finance the loans.
Advent is a long-term partner for us. The long-term sustainable nature of our business model is reinforced by this. The latest round will help us reach our vision of serving over 400 million middle income population in the country.
In the next six to nine months, the startup said it is on track to have $1 billion in assets under management.
At a time when dealflow activity has slowed down dramatically in India as investors grow cautious of writing new checks and evaluate their underwriting models after valuations of publicly listed firms take a tumble, its new funding comes at a good time.
KreditBee has been through several credit cycles and has been able to bounce back each time. Mirae Asset Venture Investments in India is increasing its commitment to back the vision of the company with this investment.
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