KrazyBee, a Non-Banking Finance Company engaged in the business of lending to students and their parents, supporst student’s education and lending to small and medium enterprises. In less than a year of its operations, KrazyBee has presence across 15 locations in India with over 400,000 registered borrowers on its platform. The startup processes over 3000 loan applications and disburses around 1,700 loans per day. KrazyBee has disbursed around INR 70 crore till date and are looking at INR 100 crore disbursements in FY18.
Manish Joshi of NewsBarons connects with Madhusudan E, Founder & CEO of KrazyBee who states ‘We are proud to be the first and largest company in India to cater to Students quality of education and life’.
NB: How did you perceive this business idea?
Madhusudan: I have been into the personal finance space for over 5 years. Across my experience and interactions with various individuals in this domain, I realized the huge need gap in the personal finance space in India and how technology can solve this problem in a much bigger way.
Thus, together with my colleague Wan Hong, I explored similar avenues in Asia and identified the humongous potential of FinTech space in India for Young Adults. That is when we decided to quit our well-paying jobs and focus on transforming the way in which personal finance is dealt with by the youth of India.
NB: What is your perspective on micro-lending?
Madhusudan: Micro lending has been an oft-ignored and underrated segment in India. For macro-finance, one would always find Banks and other established entities at their doorstep. However, when it comes to micro-loans, colloquially known as personal finance, considering the vast demographic of India, we have very few convenient options available for the youth. A revolution in this sector would certainly boost the liquidity of the economy by bolstering the purchasing capability of an average Indian consumer
NB: How do you ensure creditworthiness?
Madhusudan: College students form our major target segment so far. We have a proprietary risk algorithm which is very dynamic and looks at various factors ranging from the student’s college, marks at college, family background and other similar data points. Based on that, a credit score and hence a credit limit is allocated to the student. Also, we take the buy-in from the parents to ensure responsible purchase behavior among the students. Our NPA stands at less than 1% currently, which is much lower than the industry standards.
NB: Is student loans an ignored segment in lending in India
Madhusudan: College students are treated as a sub-prime segment in India because of lack of their credit score and no regular source of income for them. Because of this, there were hardly any convenient options for students to avail finance to support their curricular and co-curricular activities. However, we at KrazyBee believe that a major portion of this huge demographic is a prime segment since many of them have both the intent and capability to take up finance and repay back from their pocket money which they get from their parents or even sometimes via the part-time projects and internships that they take up. Hence, we decided to take up this challenge of making purchase finance hassle-free for students, and it has been a great journey so far.
NB: Explain the Campus Manager Internship program?
Madhusudan: KrazyBee is also one of the largest internship providers in India. It has tied up with close to 800 colleges across 11 cities for the Campus Manager Internship program. KrazyBee provides paid & certified internship to 1000+ college students in India and is looking forward to hiring another 2000+ students across the next 6 months.
NB: What is the minimum to maximum amount you disburse?
Madhusudan: KrazyBee has multiple offerings ranging from products to facilitate e-commerce purchases (with partnerships with all leading e-commerce platforms like Amazon, Flipkart, Paytm, Myntra etc.), semester loans (college tuition fees), two-wheeler loans (both first-hand & second-hand) and top-up loans (Paytm recharge & top-ups on KrazyBee PayCard – launched in partnership with Yes Bank and Mastercard).
However, all the KrazyBee Loans products are for short duration, minimum 1 month and maximum 12 months, with amount ranging from INR 2000 to maximum of INR 25,000 [only given with the approval of the parents] in case of consumer loans and maximum of INR 1,00,000 in case of semester/education loan where parents are the co-borrowers.
NB: What is the total amount of funds raised till date?
Madhusudan: The total investment till date has been USD 13 Million across 3 rounds with seed funding of USD 2 Million [Fenqile, K2VC and Cyber Carrier], Pre-Series A round 3 Million [Plum Ventures] and Series A round 8 Million [Xiaomi Technologies and Shunwei Capital]
NB: What is your geographical presence and expansion plan?
Madhusudan: We are currently present in 15 cities namely Bangalore, Hyderabad, Mumbai, Pune, Chennai, Coimbatore, Nagpur, Nashik, Manipal, Vellore, Indore, Ahmedabad, Vizag, Vijaywadaand Mysore. We aim to increase our presence to 20 cities by next year.