KreditBee to Turn Into ‘Public Entity’ Ahead of IPO, Board Gives Clearance: Report

KreditBee, based in Bengaluru, has reportedly received board approval to transition into a public entity as it prepares for an initial public offering (IPO).

KreditBee, established in 2016 by Madhusudan Ekambaram, Vivek Veda, and Karthikeyan Krishnaswamy, offers credit and various personal finance services via its NBFC Krazybee Services Private Limited.

According to an ET report that referenced sources, KreditBee’s board of directors approved the company’s transition into a public limited company through a special resolution on June 27.

Related: Office Space Startup IndiQube IPO Sees 23% Subscription On Day 1 Of Bidding 

Further sources informed the publication that the company has also obtained approval from the Reserve Bank of India (RBI) to integrate its group technology division, Finnovation Tech Solutions, with Krazybee Services, a non-banking finance company (NBFC).

KreditBee has been contacted by media for remarks regarding the development.  Its response will determine updates to the story.

The startup secured $9.4 million from its current investors in the context of an extended Series D funding round.  The company’s Series D fundraising has brought in a total of $209 million, with the valuation being approximately $700 million.

This development follows the interest of several NBFCs in entering the public market.

As an example, the non-banking financial company (NBFC) that concentrates on MSMEs, Aye Finance, has recently been given the go-ahead by market regulator SEBI for its initial public offering (IPO) valued at ₹1,450 crore.

Companies such as NoPaperForms, Kissht, Razorpay, and PhonePe have recently become public entities.

In a like manner, Avanse Finance, an NBFC with an emphasis on education, intends to collect INR 3,500 Cr through its IPO.  Rakesh Bhatt, who previously served as COO of Bajaj Finserv, has recently been onboarded by the company in the role of independent director.

The public market in India is experiencing a boom, with numerous companies preparing to debut on the stock exchanges.  Startups such as Wakefit, Curefoods, and Meesho have already submitted draft documents to the market regulator.

Ahead of their IPO plans, several other startups are also making the transition into public entities.