KrazyBee – Micro Loan And Credit Provider For Students Raises $8M FundingOctober 16, 2017
On Monday, Bangalore based startup, KrazyBee raised $8M in a series, a round led by Xiaomi and Shunwei capital. It was combination of equity and debt, with participation from Essel Group and RK Group.
Shirley Mao, Investment Director at Xiaomi Technologies said, “The Indian demography has huge amount of population of urban youth who spends a lot time online. For such ecosystem, the need of urgent personal finance, credits is very rare. So, focus on tech based credit evaluation and funds can help to occupy bigger market.”
Till date, the firm has raised $13M funding. It raised seed funding of $2M from Fenqile and YeahMobi in June 2016. And $3M pre-series funding from VC firm Plum ventures and its existing investors. Now it is $8M.
The firm will use this funding to improve its risk model and algorithm, entering into new market segments, focusing on product diversification and its expansion globally and also domestic. Our mission is to make credit for young professionals and college students in India easy and affordable.” said Madhusudan, CEO of KrazyBee.
What is KrazyBee about?
It was founded in 2015 by Wan Hong and Madhusudan. Hong is graduate from Wuhan university and added up with 10 years experience in Huawei. And Madhusudan holds Bachelor’s degree in Engineering from NIT, Karnataka.
It offers easy EMI cards to purchase online based on merit with no credit history or credit cards. As claimed by CEO, it processes 1700 loan applications per day. In the last 18 months it has disbursed a credit worth of Rs. 15o Cr with average ticket size of Rs 12,000.
It has signed with 6 non banking financial firms that lends through its platform, also have NBFC license from RBI.
How to Buy?
As a student, has to register themselves on Krazybee App. To verification, he/she has to submit set of documents, which will be verified within 2-3 hours. Once verified, they can purchase desired products from Amazon, Flipkart, Myntra via Krazybee App. Any student above age of 18 can be accessible. It is available in both Android and ios.
- More than 300k registered user’s
- Ecommerce, cash credit, 2 wheeler, college semester fees credits are available currently
- Tie ups with 800+ colleges in India
- More than 100 campus managers for better assistance
- Amazon, Flipkart, Myntra, Snapdeal, Paytm are current partners
- Product margin 2-12% depending on products
- Business revenue model is commission earned from each product
KrazyBee is planning into cash lending, pay-day loan segments with EarlySalary. The company is positive and confident about its achievements till date and hoping for the best.
SlicePay, neighbor competitor announced $2M funding recently, which has credit history of Rs 45 Crore and currently serving 30,000 orders per month.