KreditBee Joins Desh Wapsi Trend, Considers Shift to India

KreditBee logo

Three points you will get to know in this article:

  • KreditBee joins Indian startups like Groww, Razorpay, Meesho, and Zepto, coming back to India.
  • KreditBee plans to flip back to India, dealing with tax issues.
  • Lending tech startup raised $9.4 Mn last month from existing investors in Series D round.

Introduction to KreditBee

KreditBee is a tech startup that offers a lending platform for individuals and small businesses in India. The company was founded in 2016 and is headquartered in Gurugram, India. KreditBee offers a range of loan products, including personal loans, business loans, and credit cards. The company’s lending platform is powered by artificial intelligence and machine learning algorithms, which help the company to assess the creditworthiness of its customers and offer personalized loan products.
KreditBee has partnered with several banks and financial institutions in India to offer its lending products to a wider customer base.

KreditBee's Strategic Relocation to India

Jumping on the ‘Desh Wapsi’ trend, tech startup KreditBee is apparently considering relocating its headquarters from Singapore to India.

KreditBee has been diligently working on this move for several months now. The startup is actively engaging with regulators and navigating through tax responsibilities as part of its strategic transition back to India.

IPO Plans and the Indian Ecosystem

According to the report, shifting the company’s base to India is expected to “smooth out” their IPO plans. Earlier, Madhusudan Ekambaram, the co-founder and CEO of KreditBee, mentioned that the company is aiming to go public by 2027.

Fintech companies like KreditBee are leaning towards establishing their headquarters in India due to the maturation of the local ecosystem, including the growth of public markets in recent years.

Regulatory Preferences and Challenges

Additionally, regulators prefer fintech firms to operate within the country as it simplifies oversight and monitoring processes. At this juncture, several major Indian startups like Groww, Razorpay, Pine Labs, Meesho, and Zepto are eyeing a shift back to India. Their decision to return stems mainly from aspirations to go public and foster smoother interactions with regulatory bodies.

However, this move isn’t without its hurdles. PhonePe, for instance, relocated its headquarters to India in 2022, but encountered its fair share of challenges. Dealing with a hefty INR 8,000 Cr tax bill and navigating through complex paperwork proved to be quite the ordeal.

Tax Obligations and Government Stance

The government does not appear willing to provide any incentives to startups relocating to India. Commerce minister Piyush Goyal stated earlier this year that companies returning to India will be responsible for tax obligations. KreditBee is likely facing these challenges as they consider moving their operations to the country.

KreditBee's Background and Investors

Established back in 2018, this lending technology startup was the brilliant idea of Ekambaram, Karthikeyan Krishnaswamy, Vivek Veda, and Wan Hong. What they offer are small loans, ranging up to INR 4 Lakh, with a repayment period stretching from two to 15 months. KreditBee finds itself in competition with other notable players like Navi, PB Fintech, LoanTap, and Capital Float.

Operating under the name Finnove Private Limited in Singapore, the company’s overseas branch holds a substantial 70% stake in its Indian counterpart. Since its inception, the startup has successfully secured over $350 Mn in funding, with support pouring in from major backers such as Advent International, Premji Invest, Mirae, and NewQuest.

The startup, which was last valued at approximately $700 million, recently secured $9.4 million from its existing investors in an extension of its Series D funding round last month.

KreditBee, a tech startup, is considering relocating its headquarters from Singapore to India, aligning with the ‘Desh Wapsi’ trend. This strategic move involves engagement with regulators and navigating tax responsibilities and is expected to facilitate the company’s IPO plans. While fintech firms like KreditBee are attracted to India’s maturing ecosystem, the shift back to India presents challenges, including tax obligations and regulatory hurdles. Established in 2018, KreditBee has received substantial funding and is navigating the complexities associated with its potential relocation.

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