India SME Investments said it injected Rs 60 crores ($8.2 million) in a mix of debt and equity into the holding entity of fintech lending platform KreditBee to expand its BFSI portfolio.
In March, the holding entity of fintech firms KreditBee and Krazybee Services raised $70 million in follow-on funding just a month after a Series C fundraise from NewQuest Capital Partners, a TPG-backed Asia-Pacific-focused secondaries private equity platform and Motilal Oswal Private Equity.
While KreditBee focuses on consumer lending, Krazybee is a non-deposit-taking non-banking company that has raised debt capital from entities including ICICI Bank, AU Small Finance Bank, and Bank of Baroda.
KreditBee has been looking to expand its lending portfolio by introducing financial services like Buy-Now-Pay-Later and Insurance.
SIDBI backed India SME Investments focuses on investing in early-growth companies, primarily operating in tier 2 and tier 3 cities, targeting the lower and middle-class segment.
Its other investments include Citykart, a largest value-retailer in Uttar Pradesh and Bihar, Kushal’s, a fashion jewellery brand and snacking company Priniti.
India SME has been associated with KreditBee for more than 24 months, it said.