SIDBI India SME Investments backed PE fund invests in KreditBee personal loan application
The private equity fund backed by SIDBI India SME Investments has expanded its portfolio in the banking, financial services and insurance (BFSI) segment with a capital and debt investment of Rs 60 crore in its company of KreditBee wallet. Investing in the online loan market for personal loans is a follow-up installment of the fund which had invested Rs 28.4 crore in September 2019 as debt in Krazybee Services. The company is an RBI-backed non-bank finance company (NBFC-ND-SI) and part of the KreditBee holding company.
The financing follows an investment of around Rs 507 crore raised by KreditBee in March this year from Premji Invest, NewQuest Capital Partners, backed by TPG, Motilal Oswal Private Equity, Mirae Asset Ventures and Alpine Capital. KreditBee is looking to expand its loan portfolio by introducing financial services like Buy-Now-Pay-Later (BNPL), insurance, etc. The total capital raised by the company amounted to just over Rs 1,100 crore with the last round. According to India SME Investments, KreditBee has increased its business fivefold thanks to seasoned credit analysis, optimal CAC control and careful product selection.
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India SME Investments is registered as a Category II Alternative Investment Fund with the Securities and Exchange Board of India. It supports fast growing businesses primarily based or operating in Tier II and III cities and targeting the lower or middle class segment. Value retailer in Uttar Pradesh and Bihar Citykart, fashion jewelry brand Kushal’s and snack company Priniti are part of its portfolio.
The transaction value in the consumer segment loan market in India is expected to reach $ 52.8 million in 2021 and is expected to grow at an annual growth rate of 3.15% in 2021-25, for a total amount projected $ 59.7 million by 2025, according to Statista. In addition, the average transaction value per user in the market (consumer) lending segment is expected to be $ 1,547 in 2021. Overall, the transaction value in the alternative lending market is estimated to be $ 1,547. $ 115.7 million in 2021 and will increase 3.22% CAGR to $ 131.3. million by 2025. The largest segment is corporate crowdfunding with a probable total deal value of $ 62.9 million this year.