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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 200.00 | ACUITE A+ | Stable | Assigned | - |
| Bank Loan Ratings | 360.00 | ACUITE A+ | Stable | Reaffirmed | - |
| Total Outstanding | 560.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned the long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) on the Rs.200 Cr. Bank Loan Ratings facilities of Krazybee Services Limited (KSL). The outlook is ‘Stable’.
Acuité has reaffirmed the long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) on the Rs.360 Cr. Bank Loan Ratings facilities of Krazybee Services Limited (KSL). The outlook is ‘Stable’. Rationale for rating: The rating reaffirmation is on account of continuous improvement in scale of operation and earning profile as reflected through the platform disbursement level of Rs 24,647 Cr. in FY25 as against Rs 20,739 Cr. in FY24 and PAT of Rs. 473.18 Cr. as on FY25 as compared to Rs 285.47 Cr. as on March 31,2024. The NBFC on book AUM grew to Rs. 5899 Cr. as on March 31, 2025 from Rs. 4742.33 Cr. as on March 31, 2024. The rating continues to factor strong capitalisation position bolstered by consistent capital infusions. The capital structure of the group as reflected by consolidated gearing of 1.12 times in FY 25 and 1.04 times in Fy24 and CRAR of 29.59 percent as on March 31, 2025. The consolidated net-worth stood healthy at Rs. 3218.96 Cr. as on FY25 as against Rs. 2630.32 Cr. as on FY24.
Further, the rating derives strength from experienced management and resourceful board that has helped to build scalable business model with robust risk management systems and technology driven digital lending platform. The company leverages the technology platform and compiles information through various sources which includes the bank statement, credit bureau score, KYC checks, social behaviour, etc. for the assessment. These strengths are partially offset by moderate asset quality metrics and risks associated with the unsecured loan segment. While the group has demonstrated track record of disbursals and has recorded profitability in FY25, its ability to sustain the same while maintaining the level of slippages remains a key rating monitorable. Nonetheless, the asset quality will remain a monitorable given unsecured nature of portfolio besides technology and regulatory risks. Additionally, Acuité believes the ability of KSL to profitably scale up its portfolio while maintaining robustness of its technology platform/security given the evolving nature of fintech model is also a key rating monitorable. |
| About the Company |
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Krazybee Services Limited (KSL) is a Bengaluru-based Systemically Important NBFC-ND that operates in unsecured lending segment through a digital lending platform, “Kreditbee” owned by a group entity, Finnovation Tech Solutions Private Limited (FTSPL). As of March 31 2025, KSL has a board of six directors including three independent directors. The company commenced its operations in May 2017 and has leveraged the digital platform to expand its presence across India with on book Assets Under Management (AUM) of Rs. 5,899 Cr. as on March 31, 2025.
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| About the Group |
| Based in Bangalore, Finnovation Tech Solutions Private Limited (FTSPL) was incorporated in 2016. FTSPL owns the “Kreditbee” app which acts as a digital application for connecting the borrowers with NBFCs. FTSPL sources leads from various channels and passes on the leads to the registered regulated entities. The Board of Directors of the Company comprises of 2 Non-Executive Directors and 5 Nominee directors. |
| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profile of Krazybee Services Limited and Finnovation Tech Solutions Private Limited, as both companies are integrated in terms of operations, infrastructure, and resources, including use of the technology platform, which forms the base for KrazyBee’s end-to-end credit process. |
| Key Rating Drivers |
| Strength |
| Experienced management team coupled with backing from marquee investors
KSL and FTSPL are founded by Mr. Madhusudhan Ekambaram, CEO and Director having over 18 years of experience in various fields including product portfolio management, sales and business development Mr. Karthikeyan Krishnaswamy, CTO and Director having over 18 years of experience in technology and products, and Mr. Vivek Veda with over 18 years of experience dealing in multiple domains in Finance. The company provides lending through its NBFC arm, KSL and lending platform (‘Kreditbee’) owned by FTSPL facilitates lending via NBFCs . The Group companies are backed by marquee investors like Premji Invest, Advent International, Motilal Oswal, ICICI Bank, NewQuest Capital, MUFG Bank and Mirae Asset and has completed multiple rounds of equity funding and raised approximately USD 390 million (primary and secondary) funding till date. Acuité believes the business risk profile of group companies will benefit from the support from the management and presence/backing of marquee investors.
Improvement in Scale of operation and earning profile.
The growth in portfolio is owing to significant improvement in disbursements in FY25 and Q1FY26. The NBFC on book AUM grew to Rs.5898 Cr. as on March 31, 2025 from Rs.4742.33 Cr. as on March 31, 2024. The NBFC on book disbursements for FY25 were to the tune of Rs. 13,320Cr. (P.Y: Rs. 10,934 Cr.) The profitability metrics at a consolidated level saw an improvement YoY as marked by increase in Total Income (net of interest expense) from Rs.1709.54 Cr. in FY24 to Rs. 2336.55 Cr. in FY25. The RoAA stood at 7.52 percent for FY25 as against 6.38 percent for FY24. Comfortable capital position and gearing
The multiple rounds of equity infusion since inception in 2016 has enabled the company to maintain comfortable capital position and gearing levels. On a consolidated basis, company reported networth of Rs. 3218.96 Cr. as on FY25 ,FY24 Rs. 2630.32 Cr. with gearing of 1.12 times as on FY25 (FY24: 1.04 times). The increase in networth is attributable to internal accruals in FY25. Comfortable capitalization and gearing levels provide adequate headroom to KSPL to pursue its growth strategy and also adequate cushion to absorb asset quality shocks given the unsecured nature of portfolio. The Company has diversified its product portfolio by adding business loans and loan against property offerings. The company has demonstrated ability to raise capital, both equity and debt. On the debt front, the company has well diversified resources profile with healthy resources raising ability. Acuité expects the Group to continue to benefit from diversified funding mix across domestic banks, Institutional investors and domestic retail investors amongst others.
Scalable business model with robust risk management systems
KSL has lending presence across India enabled by its digital lending model (through “Kreditbee”, owned by Group entity, FTSPL). This enables the company to achieve scalability in business at a faster pace with well-defined risk and rule engines continuously monitoring asset quality metrics. With app based lending and turnaround time (TAT) (from application to disbursal) of around 20 minutes, the company has garnered a large borrower base comprising predominantly of younger borrowers (~28 years) |
| Weakness |
| Moderate asset quality
KSL commenced its operations in May 2017 in unsecured personal loan segment and currently caters to salaried and self-employed individuals. The portfolio increased from FY22 on account of uptick in disbursals since Q2FY22 and approach adopted by the management to discontinue short tenor loan product and expand its relatively longer tenor loans which is expected to support growth in AUM. Further, the AUM comprises of borrowers with CIBIL more than 700 for 97 percent of the portfolio as on June 30, 2025. The GNPA and NNPA as on March 31,2025 stood at 2.76 percent and 0.65 percent respectively. Acuité notes that collection capabilities built over time with in-house team and third party agencies is expected to further strengthen collections mechanism. Nonetheless, the asset quality needs to be monitored given unsecured nature of portfolio and inherent vulnerability of the borrower segment. Technology and regulatory risks Given that innovative technology is the backbone of fintech business model, the company is exposed to technology risks encompassing data security, privacy and technology failure. Since all the business functions including data storage, disbursals and collections mechanism is done digitally, any breach shall expose the company to cyber events and liabilities arising thereon. Acuité understands that the company is frequently conducting tech audit to keep a track of any potential risk. Furthermore, the company has availed a cyber-insurance policy to meet any unforeseen liability arising on the tech front. Additionally, the company is also exposed to evolving regulatory developments |
| ESG Factors Relevant for Rating |
| KSL belongs to the NBFC sector which continues to complement the efforts of banks in enhancing small ticket retail lending in India. Some of the material governance issues for the financial services sector are policies and practices with regard to business ethics, board diversity and independence, compensation structure for board and KMPs, role of the audit committee and shareholders’ rights. On the social aspect, some of the critical issues for the sector are the contributions to financial inclusion and community development, responsible financing including environmentally friendly projects and policies around data privacy. The industry, by nature has a low exposure to environmental risks. The entity has made adequate disclosures regarding its policies on related party transactions, vigil mechanism and whistle blowing. It also adheres to Reserve Bank of India’s Fair Practice Code and has the necessary interest rate and grievance redressal policies. The board of directors consist of 3 independent directors out of a total of 6 directors. Two of the Audit Committee are NonExecutive Directors with majority of them being Independent Directors. KSL has a woman director on its board. In accordance with the guidelines issued by RBI, the entity has constituted a Risk Management Committee that is responsible for identification, evaluation and mitigation of operational, strategic and external environment risks. Further, KSL has also constituted an IT strategy committee to ensure adequate control over issues like cyber security and data privacy. KSL provides personal loan with a focus on the young working class of India and has also ventured into business loans and loan against property. KSL aims at making credit highly accessible to the salaried and self-employed segment through adoption of technology. Till date, KSPL has upgraded more than 1.2 million customers from NTC (New to Credit) to a bureau score, thereby making them bankable customers. KSL supports community development through CSR projects mainly aimed at promotion of education, eradication of hunger, environmental sustainability, protection of national heritage and culture among other causes |
Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
| KSL’s liquidity profile as on March 31,2025 is well matched with no negative cumulative mismatches across all time buckets. As on March 31,2025, cash and liquid investments for the company at a consolidated level stood at Rs.1223 Cr. |
| Outlook - Stable |
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| Other Factors affecting Rating |
| None. |
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| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None |
| Applicable Criteria |
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• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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