InCred joins unicorn club with $60 million Series D funding

Fintech powerhouse InCred has achieved unicorn status after successfully raising $60 million in a Series D funding round from a mix of new and existing investors. The latest capital infusion values InCred at an impressive $1.04 billion, making it the second company to join the unicorn club this year.

The equity round, spearheaded by Ranjan Pai of MEMG, witnessed a substantial investment of $9 million. Ravi Pillai, Chairman at RP Group of Companies, and Ram Nayak, Global Co-Head of the Investment Bank at Deutsche Bank, also played key roles with investments of $5.4 million and $1.2 million, respectively. The funding round saw participation from ultra-high-net-worth individuals, Family Offices, and institutional investors such as Varanium Capital Advisors and Sattva Group.

Bhupinder Singh, Founder and Group CEO of InCred, expressed gratitude for the overwhelming support from investors. The fresh equity capital is poised to fortify InCred's position, providing the company with ample runway for the next phase of expansion. Singh highlighted InCred's 'Risk First' approach, cutting-edge technology, and a robust management team as key factors positioning the company for sustained growth.

The strategically deployed equity capital of Rs 500 Crores will bolster InCred's core business verticals, including Consumer Loans, Student Loans, and MSME Lending. All three segments have witnessed robust growth, with the market for Student Loans in India experiencing a surge due to an increase in US student visas issued to Indians. The MSME business is thriving, particularly in the secured LAP market, and the Consumer Lending business is benefitting from healthy demand driven by economic growth and festive season boosts.

InCred Finance, operating as InCred Financial Services Limited, has built a Rs 7,500+ crore loan book in just six years, boasting a CAGR of over 50 per cent over the last three years. The company reported consistently strong financials, with PBT growing from Rs 42 crore in FY22 to Rs 203 crore in FY23. The first half of the current financial year has seen the company deliver Rs 168 crore PBT with a pre-tax RoA of 5 per cent. InCred attributes its success to a diversified lending model, guided by strong risk processes, proprietary risk models, and an in-house tech engine.

The company's unwavering commitment to risk management, coupled with a top-quality management team, has solidified InCred's position as a standout player in the fintech industry. The latest funding round positions InCred for continued growth and innovation in the dynamic financial landscape.