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Micro lending platform Krazybee has raised Series A equity and debt financing led by Xiaomi Technologies and Shunwei Capital along with the participation from E-city Ventures and RK Group. The amount raised is $8 million (INR 53 Cr) The company has recently received the license to operate as a non-banking financial corporation (NBFC), from the RBI. The FinTech Startup is a micro lending platform that provides purchase finance online through a flexible monthly payment plan or installments. The Startup focusses on the student segment and is building a merit-based credit score system which shall help students to take loans basis the marks they achieve during their schooling career.
Speaking on the development , Xiaomi Technologies Investment Director Shirley Mao 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.”
KrazyBee founder and CEO Madhusudan E said, “the funding from Xiaomi Technologies and Shunwei Capital will enable the company to develop a robust risk algorithm that would, in turn, assist the platform in making system-generated decision on every profile. With the investment, the micro lending startup also looks to enhance the efficiency and accuracy of the platform, when it comes to credit assessment. KrazyBee’s mission is to make credit for young professionals and college students in India accessible and affordable. Financial independence among young adults is the need of the hour. A solution which helps them avail personal finance at maximum ease and minimum time is going to win the game in this market.”
MicroLending Fintech Startups are on the funding spree
Recently some of the Startups which have raised funds to expand their reach in the same segment are are MoneyTap, Capital Floats, CrediFiable, Innoviti and LoanTap . Such Startups deal with a greater pain points of the consumer inability to understand comprehensive and often jargoned and lengthy processes to get into, before obtaining the loan. In addition to it the formalities for the loan seems to be time consuming which further adds agony to the end consumer who needs it.