Overview – The Krazybee Services Private Limited Bond on Altifi

Details of the Corporate Bond:

• Name of the Issuer: Krazybee Services Private Limited
• Product: Senior secured NCD (regulated by SEBI)
• Yield: 12.20% p.a. XIRR
• Tenure: ~14 months
• Min Investment: ~ Rs 1,00,000
• Interest repayment: Monthly
• Principal repayment: Quarterly
• Rating: Crisil 'A-'

Key Highlights:

• Presence of renowned PE players such as Premji Invest, Advent International, MUFG Bank, TPG NewQuest Capital, Motilal Oswal Private Equity, ICICI Bank
• Strong board and governance with 3 Independent directors further supported by experienced senior management team
• Entity has been upgraded to A- from BBB+ by CRISIL and ACUITE in Sep23
• Strong growth in AUM over the last fiscal to INR 6768 crore in Dec23 from INR 4644 crore in Mar23, at a growth of 46%. As of Dec23, the company had a Net Worth of INR 1764 crore
• Entity is profitable since past 6 years, reported a PAT of Rs. 137 crore in 9mFY24 as against Rs. 65 crore in FY23. During 9mFY24, PAT margins have improved at 14.6% from 9.1% in FY23

Overview:

KrazyBee Services (P) Limited is a systemically important, non-deposit taking, non-banking financial company (ND-NBFC). The company commenced operations in fiscal 2017 and is founded by Mr Madhusudan Ekambaram, Mr Vivek Veda and Mr Karthikeyan Krishnaswamy. It is backed by strong PE investors such as Premji Invest, Advent International, MUFG Bank, TPG NewQuest Capital, Motilal Oswal Private Equity, ICICI Bank amongst others. The company focuses on providing unsecured personal loans to young professionals in India. It offers loans through its group company, Finnovation Tech Solutions Private Limited (FTSPL), which has a tech platform, ‘KreditBee’ and the platform originates loans for KrazyBee and several other partner-lenders.

KrazyBee had an AUM of INR 6768 crore and networth of INR 1764 crore as on Dec 31, 2023 on standalone basis. Operations are spread across Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Uttar Pradesh are the major ones. As of Dec23, these contributed 61% of the portfolio.

Promoter/ Management:

Madhusudan Ekambaram: Founder and CEO: He has over 19 years of experience, stepped into the corporate world more than 14 years ago as a Solution Architect in Huawei. His solution-oriented skills and comprehension of business assisted him to become Head of Product Management - E-Commerce in Huawei and also the President for Huawei Club, India. He played a catalyst role in credit growth in India led to the genesis of KrazyBee in 2016 with a vision to place the company as a primary choice of credit for the borrowers in India. His experience in the tech field coupled with financial aspiration and his ability to gain the confidence of stakeholders and customers positioned the company as one of the fastest growing Non-Banking Financial Institutions in India. Mr. Madhusudan holds a Bachelor’s degree in Information Technology from National Institute of Technology, Karnataka.

Karthikeyan Krishnaswamy: Co-Founder and CTO: He has more than 21 years of experience in the technical field. His technical experience has come in handy to give the company a spike in growth using innovative new generation technology. In the past, he has held various senior positions in the Tech industry. Before starting his time in KreditBee, he served as a Chief Technology Officer & Co-Founder in NTT Solutions (Beijing based Tech company). Apart from serving as a Technical Lead in Innov Systems, a Singapore based Tech Company, Mr. Karthikeyan also played key role as a System Architect in Huawei Technologies, conceptualizing and commercializing many micro-innovations and software solutions targeted towards India and the South Pacific market. He holds Master’s in Computer Science from National University of Singapore.

Vivek Veda: Co-Founder and CFO: He has over 20 years of experience in the field of - Accounts, Finance and Finance Analysis. In the past he has worked with big multinational banks and financial institutions. He has worked as Financial Analyst for a reputed term of over 9 years in Societe Generale, Espirito Santo Investment Bank, HSBC Global Banking and Markets, and Edelweiss Capital before starting his time in KrazyBee. Mr. Veda is a Chartered Accountant and holds a Commerce degree from Delhi University.

Key Financials: (Standalone)

All figures in INR crore

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