Major Investors Circle KreditBee Ahead of Public Listing
Investment firms Hornbill Capital and Japan's MUFG-backed Dragon Funds are actively evaluating stakes in lending startup KreditBee. This evaluation comes as part of a proposed $100–120 million fundraise planned before the company's initial public offering. Three people with direct knowledge of the matter confirmed these developments.
Pre-IPO Fundraise Details Emerge
The upcoming round will primarily consist of fresh capital injection with a small secondary component. Angel investors might sell some shares through this secondary portion. One source revealed that bids for participation are due later this month, with at least three to four funds already expressing strong interest in the asset.
A second person familiar with the negotiations indicated the deal will likely close by the end of this quarter. This fundraise represents KreditBee's first major capital infusion since 2023, when it secured $200 million in a round led by Advent International.
IPO Preparations Gain Momentum
KreditBee has appointed Nomura and ICICI Securities to lead this private fundraise. The company plans to file its IPO documents later this year. This move follows significant corporate restructuring where KreditBee merged its two India entities—Finnovation Tech and KrazyBee—ahead of the public listing.
The company also paid approximately $100 million in taxes to relocate its headquarters to India. These strategic steps demonstrate KreditBee's serious commitment to its IPO timeline despite market fluctuations affecting some earlier tech listings.
Financial Performance Shows Strong Growth
KreditBee's financial metrics reveal impressive momentum. According to a Moneycontrol report, the company's net profit jumped to ₹473 crore in FY25 from ₹285 crore in FY24. Revenue showed robust growth, increasing 40% year-on-year to ₹2,712 crore from ₹1,948 crore.
The lending platform currently serves around 6 million loan customers, with more than 2 million active users. KreditBee offers multiple financial products including personal loans through both online and offline channels, checkout finance options, and digital gold services.
Broader Fintech IPO Pipeline Develops
If successful, KreditBee will join several other fintech startups preparing to tap Indian capital markets. Companies like Kissht, Moneyview, and Fibe are at various stages of their own IPO journeys. This trend reflects growing confidence among profitable fintechs despite some earlier tech IPOs showing lackluster performance.
Industry observers note that several fintech startups valued under $1 billion—often called soonicorns—continue pursuing public listings. These include Turtlemint, KreditBee, and Kissht, demonstrating resilience amid market volatility.
Company Background and Operations
Founded in 2016 by Madhusudan Ekambaram, Vivek Veda, and Karthikeyan Krishnaswamy, KreditBee operates through its registered non-banking financial company, KrazyBee Services Pvt Ltd. The NBFC has established partnerships with over 10 financial institutions to extend credit facilities to customers across India.
The company provides loans ranging from ₹1,000 to ₹4 lakh with repayment tenures spanning 2 to 15 months. KreditBee's investor base includes prominent names like Premji Invest, Motilal Oswal Alternates, MUFG Bank, TPG-backed NewQuest Capital Partners, and Mirae Asset Ventures.
Representatives from Hornbill Capital, Dragon Funds, KreditBee, Nomura, and ICICI Securities did not respond to requests for comment regarding these developments.
