The new cash infusion is part of the larger Series D funding, which KreditBee said has now closed at $200 million.
KreditBee, which also counts Mirae Asset Venture Investments, Premiji Invest and Mitsubishi UFJ Financial Group among its backers, offers instant micro loans starting as low as $12 to new-to-credit customers and credit of over $3,500 to salaried professionals. The company says its hope is to serve the 400 million new-to-credit customers in India.
India’s credit bureau data book is thin, making it difficult for banks and other financial institutions to build confidence to extend credit to most of the population in the South Asian market.
Fintechs use modern-age underwriting systems to lend to customers and a maze of regulatory arbitrage that is increasingly getting narrow to operate.
Its new funding comes at a time when the deal flow 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.
KreditBee has witnessed several credit cycles and has come out stronger each time reflecting adaptability and resilience of its business model.