Bangalore-based Finovation Tech Solutions Pvt. Ltd, which owns and operates student micro-loan platform KrazyBee.com, has raised $2 million in seed funding from two Chinese firms - mobile ad network Yeahmobi and micro-loan/e-commerce player Fenqile.

The startup currently operates in Bangalore and 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 Wan Hong and Madhusudan E, KrazyBee offers flexible installment-based purchases exclusively to college students with no credit history or credit cards. The startup wants to focus on the student segment and will be building a merit based credit score system and the proprietary credit score will be used to asses a student’s capability to repay the installments.

"Our mission is to be the convenient connecting bridge between the college going youth of this country, and their wonderful dreams and aspirations. Our prime focus is to be the source of hassle-free financing for college students to pursue their passion, who are certainly creditworthy but don’t have any convenient options in the market to support them currently," the startup mentioned on its website.

The company sells electronics items such as smart phones, cameras and mobile accessories as well as apparel such as branded clothes, shoes and watches to college students on flexible equated monthly installment (EMI) plans. A nominal interest is charged per transaction. It has tied up with eCommerce players such as Flipkart, Paytm, Amazon and Snapdeal and offer their products to students on EMI.

The firm claims that over 10,000 students have registered on its platform in the last one month. Nearly 21% of all the orders placed on Flipkart in 2015 were by students in the 18-22 years age group, as per Madhusudan.

China's mobile ad network Yeahmobi is also looking forward to make more investments in the Indian market. Chinese 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.
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