Krazybee Services Private Limited: Empowering Youth Through Personal Loans

Introduction Of KrazyBee, Personal Loan Provider

KrazyBee was founded on 16th March 2016, and got its NBFC (Non-Banking Financial Company) license from the RBI in May 2017. It offers unsecured personal loans of up to INR 4,00,000, with repayment periods of up to 48 months.

The company started its operations in June 2017, initially focusing on personal loans for students. In April 2018, it expanded its services to provide unsecured loans to young professionals under the brand name ‘KreditBee.’ These loans have flexible tenures ranging from 4 to 48 months, with an average loan amount of around INR 22,000.

In addition to lending directly through its NBFC arm, KrazyBee also collaborates with partners for co-lending.

As of 31st March 2024, the company’s total assets under management (AUM), including co-lending, stand at ?7,644 crore. Of this, KrazyBee’s own loan portfolio is valued at ?4,742 crore¹.

Board Of Directors

1. Mr. Madhusudan E - CEO
2. Mr. Karthikeyan Krishnaswamy - CTO
3. Mr. Vivek Veda - CFO 

Apart from above there are independent directors as well in the company including Mr. Adesh Kumar Gupta, Mr. Abhishek Singhvi, and Mrs. Shashikala Ramchandra.

Products Offered By KrazyBee:

The company is mainly into offering loans. Below are the different types of loans that KrazyBee offers to its customers:

• Personal Loans
• Salary on Demand
• Business Loans
• Loans Against Property
• Two Wheeler Loans

Technology And Innovation In KrazyBee’s Offerings

KrazyBee’s success is driven by its robust tech-enabled lending platform, which ensures a seamless and efficient loan application process. The company leverages advanced technologies like artificial intelligence (AI) and machine learning (ML) for credit scoring and risk assessment, enabling it to evaluate borrowers accurately and quickly. The entire loan journey, from application to disbursal, is fully digital and managed through KrazyBee’s mobile app, offering a user-friendly experience for borrowers. This innovation not only accelerates loan approvals but also minimises paperwork, making credit more accessible to tech-savvy millennials and young professionals.

The company’s technology-first approach has also enabled it to scale operations efficiently, extending its reach to customers across India, including underserved regions. By integrating automation and digital processes, KrazyBee can handle high volumes of loan applications while maintaining precision in credit evaluation. This tech-driven model has been instrumental in supporting its rapid growth and ensuring its position as a leading fintech in the digital lending space.

To offer loans the company uses digital platforms and apps. Below are the apps used by company to offer the loans:

1. App Name: KreditBee
   1. Lending service provider: Finnovation Tech Solutions Pvt. Ltd.
   2. Website: https://www.kreditbee.in 
2. App Name: KrazyBee
   1. Lending service provider: Finnovation Tech Solutions Pvt. Ltd.
   2. Website: https://react.krazybee.com 

The Company has stopped lending on KrazyBee digital App with effect from January 21, 2020. Currently, the Company is only undertaking collection against the loans disbursed on the KrazyBee app.

1. App Name: Kreditzy
   1. Lending service provider: Kartbee Technologies Pvt. Ltd.
   2. Website: https://www.kreditzy.com

The Company has stopped lending on Kreditzy with effect from January 21, 2021. Currently, the Company is only undertaking collection against the loans disbursed on the Kreditzy app.

Target Audience Of KrazyBee

KrazyBee primarily targets students, young professionals, and first-time borrowers who often face challenges accessing traditional financial services. By offering unsecured personal loans tailored to their needs, the company empowers individuals to manage educational expenses, lifestyle needs, and career aspirations without financial constraints. Through its student-focused loans and KreditBee platform for young professionals, KrazyBee has carved a niche in catering to an underserved demographic, providing them with quick, hassle-free financial solutions. 

The impact of KrazyBee’s services extends across India, helping bridge the financial gap for individuals in both urban and rural areas. Leveraging its tech-driven platform, the company ensures seamless loan processing, making credit accessible to a wider audience. This focus on inclusion has led to significant growth in its customer base, contributing to the financial independence of thousands of students and professionals. By addressing the unique needs of this audience, KrazyBee is playing a vital role in fostering economic empowerment and mobility.

Financial Snapshot of KrazyBee

• Strong Financial Position
  KrazyBee has raised over INR 1,800 crore in equity since it was founded. As of 31st March 2023, the company’s net worth stands at INR 1,590 crore, boosted by a INR 1,288 crore equity infusion in March 2023 and a Profit After Tax (PAT) of INR 65 crore.
• Scalable Business Model with Advanced Technology
  The company’s operations are built on a strong tech-driven platform that supports rapid growth. Since FY19, KrazyBee has been offering unsecured loans of up to ?4 lakh to young professionals, with repayment terms of up to 24 months. Its fully automated digital lending process, managed through a mobile app, allows it to provide loans across India seamlessly.
• Rapid Growth in Assets Under Management (AUM)
  KrazyBee’s AUM has grown significantly, increasing 2.1x to INR 2,318.3 crore as of March 2023. By September 2023, the AUM further expanded by 1.5x to INR 3,402.8 crore, driven by higher loan disbursements.
• Strong Liquidity Position
  As of 30th June 2023, KrazyBee has INR 615 crore in unencumbered cash and unused bank credit lines, far exceeding its debt obligations of INR 201 crore until August 2023. The company also has INR 35 crore in unutilized bank lines, ensuring a strong liquidity buffer.

Source: Audited financial statements of Krazybee financial services of FY’24 and management information.

To arrange the capital, Krazybee also offers corporate bonds. These bonds from the company are secured and are rated by the credit rating agencies. On Grip Invest, investors invested in CRISIL ‘A-’ rated bonds of the company that offered more than 12% of fixed returns.

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References:

1. CARE Ratings, Accessed from: https://www.careratings.com/upload/CompanyFiles/PR/202407120742_KrazyBee_Services_Private_Limited.pdf

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