KrazyBee, a Bengaluru-based startup which operates an online instalment store for young adults, has raised around ₹52 crore ($8 million) in its Series A funding round.
The latest funding round was led by Shunwei Capital and China-based Xiaomi Technologies. The round, which was a mix of equity and debt, also witnessed the participation of RK Group and E-city Ventures — a part of Essel Group.
The startup, which is currently operating in Bengaluru, Hyderabad, Pune, Mysore, Vellore, Mumbai, Chennai, Coimbatore, Nagpur, Nashik and Manipal, is now planning to use the raised capital to expand its services to other cities.
It will also spend money on strengthening its risk model and algorithm, cater to new market segments and focus on product diversification.
Commenting on the funding, Shirley Mao, investment director at Xiaomi Technologies, said,
The Indian demography has a large population of urban young adults that spends a lot online and offline. For such an enormous ecosystem, 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.
Founded in 2015 by Wan Hong and Madhusudan E, KrazyBee offers flexible instalment-based purchases to young professionals and college students with no credit history or credit cards. It allows e-commerce purchase, cash credit, two-wheeler credit, college semester/tuition fee credit, among others.
Till now, the company has raised a total funding of around $13 million in funding. Last year, the firm raised a $2 million seed funding round from Chinese micro-lending platform for young adults, Fenqile, and venture capital firm, YeahMobi. It then raised a pre-Series A funding round of $3 million VC firm Plum Ventures and its existing investors.