InCred Finance, the lending arm of the financial services conglomerate InCred Group, has successfully secured a substantial ₹500 crore (approximately $60 million) in its latest Series D funding round, propelling the company into the esteemed ‘unicorn’ club. This achievement is particularly noteworthy, considering that 2023 has seen minimal additions to the unicorn roster in India, with Zepto being the only notable quick-commerce firm joining the ranks.
The Series D funding round, while a significant milestone for InCred Finance, has also injected fresh vigor into the unicorn landscape, positioning the company at an impressive valuation of around ₹8,800 crore (approximately $1.05 billion). While the specific details of the investors remain undisclosed, InCred Finance has hinted at the participation of a diverse group, including a global private equity fund, corporate treasuries, family offices, and ultra-high-net-worth individuals.
This funding triumph arrives approximately sixteen months after the completion of InCred Finance’s merger with the prominent US private equity player, KKR, in July of the previous year. The merger brought together KKR India Financial Services Ltd, the local non-banking finance arm of KKR, and the erstwhile Incred Financial, forming InCred Financial Services Ltd. Post-merger, KKR, alongside two other investors – Teacher Retirement System of Texas and Abu Dhabi Investment Authority (ADIA) – collectively held slightly over one-third of the stake in the amalgamated entity.
InCred Finance has outlined ambitious plans for the newly acquired capital, intending to allocate it strategically across its core business verticals, which include consumer loans, student loans, and MSME lending. Bhupinder Singh, the founder and group CEO of InCred, expressed his enthusiasm, stating, “This funding commitment marks a significant milestone in our journey and takes us into the ranks of unicorns.”
Singh further articulated the company’s overarching vision, emphasizing their goal to position InCred as an integral component of every Indian family’s financial aspirations. He also alluded to the eventual listing of the business, aiming to unlock substantial value for all stakeholders involved.
Founded in 2016 by Bhupinder Singh, a former executive at Deutsche Bank, InCred Finance has evolved into a tech-enabled lending platform. The company has attracted a diverse array of investors, including Investcorp, Oaks, Moore Capital, Elevar Equity, Paragon Partners, Ranjan Pai, and Gaurav Dalmia, among others. With a loan book exceeding ₹7,500 crore, InCred Finance operates as a new-age lender, facilitating online and offline loans for consumers, small businesses, and education.
InCred Finance is an integral part of the larger InCred Group, a diversified conglomerate with business interests spanning wealth and asset management, investment banking (InCred Capital), and retail bonds and alternative investments (InCred Money).
This recent funding round not only fortifies InCred Finance’s position in the competitive financial landscape but also signifies a broader trend of resilience and growth within India’s fintech sector. As a unicorn, InCred Finance is poised to play a pivotal role in shaping the future of financial services in the country, with its innovative and inclusive approach to lending.