KreditBee, an Indian digital lending platform, is discussing a pre-IPO funding round expected to raise $120 million. Sources indicate that the post-money valuation of KreditBee will be around $1.2 billion after this funding.
This proposed funding round is likely to be led by an external investor, with existing investors also planning to contribute additional capital.
Elevated Valuation Linked to Corporate Restructuring
The current valuation represents a notable increase from the previous post-money valuation of $700 million. This rise is attributed to corporate restructuring undertaken by KreditBee as part of its preparation for an initial public offering.
KreditBee has received board approval to convert into a public limited company, which is essential for initiating an IPO. Additionally, the company has also gained approval to merge its technology platform subsidiary, Finnovation Tech Solutions, into Krazybee Services, its RBI-regulated lending entity. This move aims to bring all operations under the regulatory umbrella of the Reserve Bank of India and streamline the corporate structure.
As of March 2025, KreditBee reported a net worth of approximately $373 million and assets under management valued at $1.22 billion. The company also conducted lending through partner lenders. For the full financial year ending in 2025, it achieved a net profit of about $57 million, marking a 66% increase from the previous year. Revenue increased by 40% to approximately $326 million.
In the quarter ending December 2025, KreditBee recorded a net profit of $16.6 million, up from $5.7 million in the same period last year. Quarterly revenue reached $97 million compared to $68 million earlier.
Product Diversification and Market Positioning
KreditBee offers a range of credit products beyond personal loans, including business loans, property loans, and two-wheeler loans. The company has also accessed capital markets through issued corporate bonds with a 12.1% coupon rate from its RBI-regulated unit.
The recent fundraising comes in the context of increased regulatory scrutiny on unsecured lending in India. Financial institutions are now required to reduce their exposure to unsecured credit, which has encouraged some digital lenders like KreditBee to evaluate their product mixes and growth strategies more carefully. The company’s ability to secure pre-IPO funding highlights ongoing interest from investors in digital lenders that can showcase profitability, a diversified range of products, and adherence to stringent regulatory standards.
KreditBee’s move towards listing follows broader trends seen in the Indian fintech sector, where several digital lenders are pursuing IPO readiness through comprehensive restructuring, alignment with regulations, and diversification beyond core personal lending. The merger of KreditBee’s technology arm into its lending entity, along with its multi-product coverage and access to capital markets, reflects a model increasingly adopted by platforms aiming to establish institutional-grade governance before entering the public market.
