Bengaluru-based digital lending platform KreditBee has received approval from its board to convert into a public entity ahead of its initial public offering (IPO).

KreditBee's board of directors approved its transition into a public limited company via a special resolution passed on June 27, Economic Times reported.

The company has also recieved the Reserve Bank of India (RBI)'s approval to merge its technology arm Finnovation Tech Solutions into non banking finance company (NBFC) Krazybee Services.

 

Founded in 2016 by Madhusudan Ekambaram, Vivek Veda, and Karthikeyan Krishnaswamy, KreditBee operates in unsecured personal loan segment, with average ticket size at around Rs 30,000. The company has raised close to $400 million in funding till date. It was last valued at $700 million. Premji Invest is largest investor in the digital lender. Other top investors include, Advent International, MUFG Bank, TPG NewQuest Capital, Motilal Oswal Private Equity, and ICICI Bank, among others.

The company reported net profit of Rs 473 crore on a total income of Rs 2,712 crore during FY25, against net profit of Rs 285 crore on a total income of Rs 1,948 crore in FY24, CareEdge ratings reported. The company's -- which generates revenue from interest income -- credit cost stood higher at 7.7% in FY25 against 6.1% in FY24.

On a combined basis, the net worth of the group stood at Rs 3,107 crore as on March 31, 2025, against Rs 2,537 crore as on March 31, 2024.

"With continued write-offs gross non-performing assets and net NPA stood at 2.8% and 0.7%, respectively, as on March 31, 2025 (2.3% and 0.7%, respectively, as on March 31, 2024)," the rating agency stated.

KrazyBee has an overall AUM (including co-lending) of Rs 10,102 crore as on March 31, 2025, against (Rs 7,644 crore as on as on March 31, 2024). KrazyBee NBFC has its own book loan portfolio of Rs 5,898 crore as on March 31, 2025 (Rs 4,742 crore as on March 31, 2024).

Several fintech startups are transitioning into public entities ahead of their IPO plans. Aye Finance, Avanse Finance Ring (Kissht) are some fintech NBFCs planning to IPO this year. In addition, top fintech firms such as Pine Labs, PhonePe are also set to list on exchanges this year.