KreditBee Records Impressive Rs 95 Crore Profit in H1 FY24, Matching FY23's Full-Year Figures
Online lending startup KreditBee achieves a noteworthy profit of Rs 95 crore in the first half of the current financial year, equalling the full-year profit for FY23. The success is attributed to strong disbursements and a rising demand for small-ticket loans. Co-founder and CFO Vivek Veda highlights the evolving trends, emphasizing increased average ticket size and tenure.
In a remarkable financial performance, online lending startup KreditBee has reported a substantial profit of Rs 95 crore in the first half of the current financial year. This achievement is particularly noteworthy as it matches the full-year profit for FY23. The company attributes this success to robust disbursements and an escalating appetite for small-ticket loans among consumers.
Co-founder and CFO Vivek Veda noted the evolving trends, stating, "What has changed is that over a period of time, the average ticket size and tenure have increased. My average tenure is now around 9 months, compared to 3 months in 2020. The average ticket size has risen to Rs 21,000, from Rs 7,000-8,000 just two years ago."
Specializing in the unsecured personal loan segment, KreditBee has disbursed loans amounting to Rs 9,500 crore in the first half of the year, surpassing the total disbursed in the entire 2023, which stood at Rs 14,000 crore. Looking ahead, the company aims for a 40-50% increase in disbursements compared to the previous year, targeting an asset under management of Rs 7,500-8,000 crore for the current financial year.
In a strategic move, KreditBee has ventured into the business lending segment, currently holding a loan book of Rs 400 crore with a monthly disbursal ranging between Rs 50-60 crore. To diversify from its online-first approach, the company is experimenting with physical branches in Bengaluru.
Despite recent challenges faced by fintech apps providing loans under Rs 50,000 due to the RBI's circular on increased risk weights, KreditBee remains undeterred. While other players like Paytm are recalibrating their exposure, KreditBee plans to stay committed to the small-ticket loan segment.
Veda affirmed the company's stance, stating, "We will tweak our business model where required, but this is the segment we will be focusing on. We haven't seen any challenges from the NBFCs we have partnered with because they understand that this is our forte."
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