Recently, we had the opportunity to delve into the world of KreditBee through an exclusive interview with Mr. Vivek Veda, the Co-Founder & CFO. KreditBee stands as a fintech platform that facilitates seamless loan transactions between borrowers and personal loan providers, including NBFCs and banks.
The Origin Story of KreditBee
The intricate dance of credit acquisition in India often presents a perplexing conundrum – the need for a credit history to secure a loan, yet the necessity of a loan to build that very history. This conundrum perpetuates financial exclusion, barring many from access to credit due to the absence of a credit history. Evidently, the issue of limited financial inclusion still looms large in India. To tackle this challenge head-on, KreditBee was born.
In 2018, Madhusudan Ekambaram, Karthikeyan Krishnaswamy, and Vivek Veda joined forces to establish KreditBee. Their mission was clear – democratizing credit. The larger vision extended to achieving financial inclusion for the underserved, including self-employed and salaried professionals.
KreditBee took the lead in providing loans of varying sizes and repayment schedules through a user-friendly digital platform. The entire process, from eligibility checks to application, disbursement, and repayment, was meticulously streamlined for users. Thus, KreditBee embarked on its journey to bridge the gap in the credit market and extend financial opportunities to a wider populace.
The Indian Fintech Terrain
India’s credit market, vast and yet largely untapped, prompted KreditBee to consider alternative lending data points. The platform goes beyond the conventional salary and bureau scores, enabling loans for individuals with limited credit history or those in non-salaried roles like self-employed professionals. This inclusive approach empowers those underserved by traditional financial institutions, thereby contributing to financial inclusion.
Navigating Challenging Economic Climates
KreditBee’s journey was marked by resilience, fiscal prudence, and robust due diligence. Unlike some startups, the company has maintained a profit-oriented trajectory, remaining profitable since FY19, barring the pandemic period. This fiscal discipline and adaptability proved crucial during the COVID-19 pandemic, as KreditBee’s loan books displayed resilience even during challenging times.
The company’s funding strategy is a testament to its organizational rigor. Despite the pandemic’s economic impact, KreditBee managed to secure a $150 million funding round in 2021, featuring prominent Indian and global funds. Moreover, the startup defied the “funding winter” trend by raising $200 million in a Series D round in early 2023, underlining its robust systems, processes, and impressive performance.
Technology as a Pillar of Success
KreditBee’s success narrative is intertwined with its technological prowess. The platform’s core focus on digital lending facilitated an end-to-end digital process covering customer onboarding, underwriting, disbursement, and collections. Operational efficiency flourished, with a remarkable turnaround time of around 20 minutes for crucial credit decisions, including loan amounts and interest rates. Transparency is maintained through comprehensive charge disclosures before loan disbursement, fostering customer trust.
Future Challenges and Trends
As the fintech industry evolves, KreditBee anticipates challenges in the regulatory landscape due to the dynamic nature of the sector. Regulatory engagement and compliance are paramount to navigate these changes while safeguarding customer data privacy and security. The company also recognizes the importance of customer education, particularly in a digital lending landscape with cases of illegal lending apps and scams.
KreditBee’s future vision extends to becoming a comprehensive financial conglomerate, catering to diverse financial needs. Plans for entering capital markets are on the horizon, which will further enhance the platform’s growth and visibility.
In the competitive fintech arena, KreditBee remains dedicated to innovation, customer-centricity, and continual enhancement of its offerings. Its journey stands as a testament to the fusion of technology, financial inclusivity, and unwavering commitment to customer well-being.
