Microlending firm KrazyBee, based in Bengaluru, has raised $ 8 million in Series, A equity and debt financing round. This round was led by Xiaomi Technologies and Shunwei Capital with participation from E city Ventures and RK Group.
KrazyBee, founded in 2015 by E. Madhusudan and Wan Hong, is operated by Bengaluru based Finovation Tech Solutions Pvt., Ltd., and is an online microlending platform in India. The company will use the newly raised capital to strengthen their risk model and core algorithm to cater to new market segments and focus on product diversification. The microlending firm will also spend a portion of the funding for geographical expansion in their existing segments. Currently, KrazyBee operates in Bengaluru, Hyderabad, Vellore, Pune and Mysore. Post this funding round, the company plans to expand their services to six other locations.
Speaking about the investment, Xiaomi Technologies’ investment director, Shirley Mao said for such an enormous ecosystem like India, the need for urgent personal finance for purchase requirements is underserved. “A focus on tech based credit evaluation and compliant sourcing of funds can help capture and penetrate this market,” she added.
KrazyBee received their Non Banking Financial Institution license only in the month of June this year. The fresh funds will help in enabling the company to create a robust algorithm that would assist the platform in making system generated decisions on every profile. Speaking about the Series A round of funding, the CEO of KrazyBee, Madhusudan said, “Financial independence among young adults is the need of the hour. A solution which helps them avail personal finance at maximum ease and minimum time is going to win the game in this market.”
The company raised seed funding from the microlending firm Fenqile and the venture capital firm YeahMobi in June 2016. They also raised $ 3 million in a prior funding round before the Series A funding round, from Plum Ventures in December 2016. KrazyBee has raised a total of $ 13 million in funding till date. They claim to process nearly 1700 loan applications per day and boast of a nonperformance asset (NPA) score of less than 1%.