With the objective of launching an Android app and to improve its risk evaluation management, Bangalore-based Finovation Tech solutions Pvt. Ltd that runs student micro-loan platform KrazyBee.com, has raised $2 million in seed funding from two Chinese firms.
Wan Hong, co-founder, KrazyBee, said, “We have raised the funds from Chinese mobile ad network Yeahmobi and micro-loan/e-commerce player Fenqile.”
China’s Fenqile is a micro-loan site that allows users to borrow small sums of money to buy things on affordable short- and long-term payment plans.
Operating in Bangalore at present, Finovation Tech solutions is planning to use the funds to expand its services to other cities. The funds will also be used to launch an Android app, besides improving its risk evaluation model.
Founded in 2015 by Hong and Madhusudan E, KrazyBee offers flexible installment-based purchases exclusively to college students with no credit history or credit cards. It wants to focus on the student segment and is en route to building a merit-based credit score system and the proprietary credit score that will be used to assess a student’s capability to repay the instalments.
The two investors that have invested in the platform have the experience and belief there is a large window for the sector. Jessica Wong, vice-president, Yeahmobi believes there is a huge opportunity in this sector and the team has the potential.
KrazyBee sells electronics items such as smartphones, cameras and mobile accessories as well as apparel such as branded clothes, shoes and watches to college students on flexible equated monthly instalment (EMI) plans. A nominal interest is charged per transaction.
It has tied up with leading e-commerce players such as Flipkart, Paytm, Amazon and Snapdeal and offer their products to students on EMI.
According to the company, more than 10,000 students have registered on its platform in the last one month.