The Bengaluru-based micro-lending startup, KrazyBee has raised about Rs 51.7 crore in Series A round led by Xiaomi Technologies and Chinese venture capital fund Shunwei Capital. The funding raised was a combination of equity and debt, with participation from Essel Group’s E-City Ventures and RK Group.
The firm, which is operated by Finovation Tech Solutions Pvt. Ltd will deploy the newly-raised capital for strengthening the risk model and core algorithm, geared towards catering to new market segments and focusing on product diversification.
Shirley Mao, Investment Director of Xiaomi Technologies said, “The Indian demography has a large population of urban young adults that spend a lot online & offline. For such an enormous ecosystem, the need for urgent personal finance for purchase requirements is highly underserved. An appropriate focus towards tech-based credit evaluation and compliant sourcing of funds can help capture and penetrate this market big time.”
Founded in 2015 by Wan Hong and Madhusudan E, KrazyBee provides flexible instalment-based purchases exclusively to college students with no credit history. It allows e-commerce purchase, cash credit, two-wheeler credit, college semester/tuition fee credit, among others.
KrazyBee’s mission is to be the convenient connecting bridge between the college-going youth of this country, and their wonderful dreams and aspirations. Its prime focus is to be the source of hassle-free financing for college students to pursue their passion, who are certainly creditworthy but don’t have any convenient options in the market to support them currently.
The startup currently operates in Bengaluru, Hyderabad, Pune, Mysore, Vellore, Mumbai, Chennai, Coimbatore, Nagpur, Nashik and Manipal. With the newly raised capital, KrazyBee plans to expand further to other cities.
Since inception, KrazyBee has raised a total funding of $13 million. Last year in June, the firm raised $2 million from Chinese companies Yeahmobi and Fenqile. It had also received $3 million in a pre-Series A round from Plum Ventures and other investors.