Two people familiar with the development said that internationally-backed internationally-backed loan startup Kreditbee is combining its two Indian entities as it prepares for a local listing next year.
The move comes after the Bangalore startup moved to India after disbanding Singaporean parents.
Kreditbee has paid about $100 million in taxes to move its headquarters to India, the second person the first two people said, both of whom spoke on anonymity.
The first person said: “Two Indian entities that own Mirror stakes, Finnovation Tech and Krazybee, are combining. This is consistent with the preparations needed before listing in India.”
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The second person said that management invited investment banks to help prepare their roadmap for listing in India, and bankers have asked the company to merge entities to clear regulatory requirements as part of the process.
The Reserve Bank of India requires a loan entity residing in India before it is listed locally. The person added: “Now, with the two entities that may merge at the end of the fiscal year, the phase of the phase will be set.
When contacted with Kreditbee’s co-founder and CEO Madhusudan Ekambaram, he declined to comment.
The company raised $200 million in funding rounds in January 2023 by U.S. private equity firm Advent International, and is expected to raise a pre-IPO round in the second half of the current fiscal year.
“From October to December this year, the company will provide a first-round paving way for some former supporters and bring long-term investors to the board,” the second person added.
Investor support
Investors in Kreditbee include Advent International, Premji Invest, Motilal Oswal alternate, MUFG Bank, TPG-backed Newquest Capital Partners and Mirae Asset Ventures. “The new funding round could be more than $100 million, and the company aims to have a $500 million IPO raise,” the first person said.
In 2023, Kreditbee was worth $70-800 million last time.
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Finnovation Tech Solution, parent company of lending platform Kreditbee, rose 26.5% profit, according to news reports, rose 26.5% ₹The fiscal year ended March 31, 2024 was 1.264 million ₹999,200 million last year. Krazybee, the company’s non-bank lending unit, sees its net profit exceeding three times ₹2003 million fiscal year.
Kreditbee joins a long list of profitable startups that want to tap into the buoyant Indian capital markets and help its existing investors find exports. Companies like Groww, Razorpay, Udaan, Meesho, Zepto, Phonepe, Pinelabs are in the process, or most likely to start listing here by flipping India.
