India SME Investments is registered as a Category II Alternative Investment Fund with the Securities and Exchange Board of India.
SIDBI India-backed private equity fund SME Investments has expanded its portfolio into the banking, financial services and insurance (BFSI) segment with an equity and debt investment of Rs 60 crore in its portfolio company KreditBee. Investing in the online loan market for personal loans is a follow-up tranche of the investment of the fund that had placed Rs 28.4 crore in September 2019 as debt on Krazybee Services. The company is a systemically important non-bank finance company that does not accept deposits and is supported by the RBI (NBFC-ND-SI) and is part of the KreditBee holding company.
The financing followed an investment of around Rs 507 million raised by KreditBee in March this year from Premji Invest, NewQuest Capital Partners, Motilal Oswal Private Equity, Mirae Asset Ventures and Alpine Capital. KreditBee is looking to expand its loan portfolio by introducing financial services such as Buy-Now-Pay-Later (BNPL), insurance, etc. The total capital raised by the company stood at just over Rs 1,100 crore with the latest round. According to India SME Investments, KreditBee has scaled its business more than 5 times thanks to experienced credit analysis, optimal CAC control and prudent product selection.
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India SME Investments is registered as a Category II Alternative Investment Fund with the Securities and Exchange Board of India. It supports early growth companies operating primarily in Tier II and III cities and targeting the lower or middle class segment. Value retailer in Uttar Pradesh and Bihar Citykart, fashion jewelry brand Kushal’s and snack company Priniti are part of its portfolio.
The transaction value in the loan market for the consumer segment in India is likely to reach $ 52.8 million in 2021 and is expected to grow at an annual growth rate of 3.15% during 2021-25, which will lead to a total projected amount of $ 59.7 million by 2025, according to Statista. Additionally, the average transaction value per user in the market (consumer) loan segment is expected to be worth $ 1,547 in 2021. Overall, the alternative loan market transaction value is estimated at $ 115.7 million in 2021 and it will grow at a 3.22% CAGR to $ 131.3 million by 2025. The largest segment is crowdlending for companies with a probable total transaction value of $ 62.9 million this year.
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