India-based digital lending platform KreditBee is in discussions to raise USD 120 million through a pre-IPO funding round, with sources familiar with the matter indicating the raise would value the company at USD 1.2 billion post-money. The round is expected to be led by an external investor, with existing backers also contributing additional capital.
The targeted valuation marks a significant step up from a previous post-money valuation of USD 700 million, with the increase linked to corporate restructuring undertaken in preparation for a public listing.
Regulatory consolidation ahead of IPO
KreditBee has received board approval to convert into a public limited company, a prerequisite for proceeding with an initial public offering. As part of its pre-IPO restructuring, the company has also obtained approval to merge its technology platform subsidiary, Finnovation Tech Solutions, into its Reserve Bank of India (RBI)-regulated lending arm, Krazybee Services. The consolidation brings the group's operations fully within the RBI-regulated entity and simplifies the overall corporate structure.
As of March 2025, KreditBee reported a net worth of approximately USD 373 million and assets under management of USD 1.22 billion, with a significant portion of lending conducted through partner lenders. For the full financial year 2025, the company posted net profit of approximately USD 57 million, representing a 66% increase year-on-year, while revenue rose 40% to approximately USD 326 million.
For the quarter ending December 2025, KreditBee recorded net profit of USD 16.6 million, up from USD 5.7 million in the same period a year earlier, with quarterly revenue reaching USD 97 million compared to USD 68 million previously.
Product diversification and market positioning
KreditBee operates across a range of credit products beyond personal loans, including business loans, loans against property, and two-wheeler loans. The company has also accessed capital markets through listed debentures, with its RBI-regulated unit issuing corporate bonds at a 12.1% coupon rate, broadening its funding base beyond equity rounds.
The fundraising comes against a broader backdrop of regulatory caution around unsecured lending in India. The RBI has directed financial institutions to reduce their exposure to unsecured credit, a policy shift that has prompted some digital lenders to reassess product mix and growth strategies. KreditBee's ability to attract pre-IPO investment signals continued investor appetite for digital lenders that can demonstrate profitability, diversified product offerings, and a regulated operational structure.
The company's path to listing follows a wider trend among India's fintech sector, where several digital lenders have pursued IPO readiness through structural consolidation, regulatory alignment, and expansion beyond core personal lending. KreditBee's merger of its technology arm into its lending entity, combined with multi-product coverage and capital markets access, reflects a model increasingly adopted by platforms seeking to demonstrate institutional-grade governance ahead of public markets.
