Kreedo Early Childhood Solutions has raised INR 10 Cr ($1.2 Mn) in debt funding from Recur Club
The Bengaluru-based company plans to deploy the fresh proceeds to boost its product offerings and expand operations
In August, the startup raised $4 Mn (INR 33 Cr) in a Series A funding round co led by Heritas Capital and UBS Optimus Foundation
Kreedo Early Childhood Solutions, a startup that offers transformation solutions for early learning in schools, has raised INR 10 Cr ($1.2 Mn) in debt funding from Recur Club.
The Bengaluru-based company plans to deploy the fresh proceeds to boost its product offerings and expand operations.
It further said in a statement that the round is structured as a curated debt stack, strategically combining short term and long term debt lines, including both secured and unsecured debt instruments.
“This funding from Recur Club marks a pivotal step in scaling our operations and meeting our working capital needs. We are delighted to collaborate with Recur Club, whose seamless and efficient funding process perfectly aligns with our vision of creating impactful change in the education sector,” said Kreedo cofounder Manikandan Krishnan.
Founded in 2012 by Krishnan and Mridula Shridhar, the startup aims to deliver quality education in affordable private and preschools in early years.
Kreedo claims to work on improving education in over 3.5 Lakh affordable private schools across India, catering to low-income families and charging less than INR 30,000 annually.
Furthermore, it claims to have a revenue growth rate of over 35% for the past three years.
In August, the startup raised $4 Mn (INR 33 Cr) in a Series A funding round co led by Heritas Capital and UBS Optimus Foundation.
On the broader scenario, there is a rise in interest for raising capital via debt among small businesses and the interest in debt funding is growing for several reasons, where founders can retain their stake in the business and reduce the cost of raising capital.
For instance, in October, lending tech startup True Balance raised INR 20 Cr in debt from VentureSoul Partners to expand its operations.
Also, prior to that, Bengaluru-based edtech startup Vedantu bagged INR 19.25 Cr in a mix of debt and equity financing from Stride Ventures, in September.
According to Inc42’s H1 2024 funding report, debt investments in Indian startups stood at $576 Mn, more than twice the $285 Mn capital raised by startups in the same period a year ago.
