Kreedo Early Childhood Solutions Raises INR 10 Cr in Debt Funding from Recur Club

• ByStartupStory     |    December 10, 2024

Bengaluru-based Kreedo Early Childhood Solutions, a startup revolutionizing early learning in schools, has secured INR 10 Cr (approximately $1.2 Mn) in debt funding from Recur Club. The company plans to utilize the fresh proceeds to enhance its product offerings and expand its operations across India.

The debt funding round is structured as a curated debt stack, combining both short-term and long-term debt lines, including secured and unsecured debt instruments. This strategic approach is expected to provide Kreedo with the financial flexibility needed to scale its operations and meet working capital requirements.

“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 Manikandan Krishnan and Mridula Shridhar, Kreedo aims to improve the quality of education in affordable private and preschool institutions across India. The startup works with over 3.5 lakh affordable private schools, catering primarily to low-income families and charging less than INR 30,000 annually for its educational services.

In addition to this funding round, Kreedo has reported a revenue growth rate of over 35% over the past three years, showcasing its strong position in the education sector. The fresh capital will help the company further its mission of improving access to quality education in India’s underserved regions.

This move comes after Kreedo raised $4 Mn (INR 33 Cr) in a Series A funding round in August 2024, co-led by Heritas Capital and UBS Optimus Foundation.

Debt funding has been gaining traction among small businesses, as it allows founders to retain their equity stake while meeting capital requirements at a lower cost. A growing number of startups are choosing debt over equity funding for this very reason.

In a similar development, lending tech startup True Balance raised INR 20 Cr in debt funding from VentureSoul Partners in October to fuel its expansion efforts. Earlier in September, edtech startup Vedantu secured INR 19.25 Cr in a mix of debt and equity financing from Stride Ventures.

According to Inc42’s H1 2024 funding report, debt investments in Indian startups surged to $576 Mn, more than double the $285 Mn raised in the same period a year ago, signaling a broader shift toward debt funding in the Indian startup ecosystem.

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