New Delhi, April 8 -- Digital lending platform KreditBee said Wednesday it has raised $280 million (Rs 2,590 crore) in its Series E funding round at a post-money valuation of $1.5 billion.
The round, which is likely a precursor to the company's planned initial public offering, was led by Motilal Oswal Alternates, Hornbill Capital, and Mitsubishi UFJ Financial Group-backed Dragon Funds.
WhiteOak Capital, AP Moller Holding, and existing investors including Premji Invest and private equity firm Advent International also joined the round, KreditBee said in a statement.
The round makes KreditBee the second fintech startup to surpass the valuation of $1 billion in 2026. Earlier this year, Juspay reached a valuation of $1.2 billion, after a Series D follow-on round led by WestBridge Capital.
KreditBee, operated by Finnovation Tech Solutions Pvt Ltd, said it will use the fresh funds to expand its lending portfolio, deepen its presence across key markets, and strengthen its technology platform. As part of its next phase of growth, the company plans to scale its artificial intelligence capabilities for sharper risk assessment, improving credit penetration, and enabling more personalised financial offerings across customer segments.
"The strong interest from new investors, along with continued participation from our existing investors reflects deep confidence in our business model and our mission to make credit accessible to millions of Indians," Madhusudan E, KreditBee's co-founder and CEO, said in the statement.
"We are increasingly embedding AI into the core of our lending stack to enhance underwriting precision, strengthen risk controls, and deliver a faster, more intuitive customer experience," he added.
KreditBee was co-founded by Madhusudan E., Karthikeyan Krishnaswamy and Vivek Veda in 2016. The company offers credit through its non-banking finance arm, KrazyBee Services Ltd, and through co-lending partnerships with over 10 financial institutions.
The platform offers a range of loan products, including personal loans, business loans, loans against property, and two-wheeler loans. It says it has facilitated over 60 million loans across India and manages assets under management (AUM) of $1.5 billion as of March 2026.
Apart from loans, KreditBee provides value-added services like credit report solutions and UPI-based offerings.
Broadly, KreditBee has over 230 million app downloads and a strong base of more than 18 million unique loan customers.
In late 2024, VCCircle had reported that KreditBee was planning a pre-IPO round. The company is gearing up for an IPO, and is merging its technology and NBFC entities. Earlier, the company shifted the domicile of its holding company Finnov to India from Singapore. Finnov is the holding company for its lending platform Finnovation Tech Solutions, which operates KreditBee, as well as the NBFC unit KrazyBee.
Published by HT Digital Content Services with permission from VC Circle.