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Bengaluru-based KreditBee raised the second tranche of $100 million of its $200 million Series D funding from private equity investor Advent International. Avendus Capital acted as the exclusive financial advisor on the transaction.

The additional capital raised will be used in scaling the existing business and diversifying its product offering by venturing into digitally enabled financial products.

“We believe KreditBee’s proprietary underwriting tech stack is one of the best in the industry and helps in its ability to identify and underwrite future prime customers at an early stage,” said Shweta Jalan, Managing Partner at Advent International. 

Last month, the fintech startup raised the first tranche from Mitsubishi UFJ Financial Group (MUFG), along with existing investors Premji Invest, Motilal Oswal Alternates, NewQuest Capital Partners, and Mirae Asset Venture Investments. 

“The latest round will help us to achieve our vision of serving the over 400 million middle income population in the country,” said Madhusudan Ekambaram, Co-founder and CEO of KreditBee.

The startup offers credit and other personal finance requirements through its in-house RBI-registered NBFC Krazybee Services Pvt Ltd, along with partnerships with over 10 financial institutions. It aims to surpass an AUM of $1 billion over the next six to nine months.

According to Pankaj Naik, Executive Director and Co-Head, Digital and Technology Investment Banking at Avendus Capital, this new funding will help KreditBee consolidate its position as a strong leader in the personal digital lending market. 

“The current round is a reflection that in any market conditions, companies with attractive margin profiles addressing a large market opportunity continue to create an exceptional outcome,” stated Pankaj.

KreditBee has seven million loan users, out of which over three million are active loan customers.