InCred Financial Services Raises Rs 500 Crores, Attains Unicorn Status
- ByStartupStory | November 10, 2023
InCred Financial Services Ltd, the lending subsidiary of InCred Group, has successfully secured Rs 500 crore in a Series D funding round, propelling the fintech startup into the esteemed “unicorn” club, becoming the second Indian startup to achieve this status this year, following Zepto’s recent funding.
The Series D funding values InCred Financial at approximately Rs 8,800 crore or $1.05 billion. While the company has chosen not to disclose the specific investors, it confirmed that the funding includes a mix of participants, such as a global private equity (PE) fund, corporate treasuries, family offices, and ultra-high-net-worth individuals.
This development comes 16 months after InCred Financial Services completed its merger with KKR India Financial Services Ltd, a local non-banking finance arm of American private equity giant KKR, in an all-stock transaction in July of the previous year.
InCred Financial Services was created as a result of the merger between KKR India Financial Services Ltd and the former InCred Financial. The combined entity’s ownership is distributed among KKR, the Teacher Retirement System of Texas, the Abu Dhabi Investment Authority, and other investors, with KKR and two additional investors collectively holding slightly over one-third of the stake.
InCred Finance intends to allocate the capital raised from this funding round to its primary business areas, which encompass consumer loans, student loans, and lending to micro, small, and medium-sized enterprises (MSMEs).
Bhupinder Singh, the founder and group CEO of InCred, expressed his enthusiasm for reaching the “unicorn” status, describing it as a significant milestone in the company’s journey. He emphasized InCred’s aim to become a crucial part of every Indian family’s financial aspirations, with eventual plans for listing the business, generating substantial value for all shareholders.
Founded in 2016 by Bhupinder Singh, a former Deutsche Bank executive, InCred Finance operates as a tech-enabled lending platform, counting prominent investors such as Investcorp, Oaks Asset Management, Moore Capital, Elevar Equity, Ranjan Pai (Manipal Group Chairman), Gaurav Dalmia (founding chairman of Landmark Holdings, Dalmia Group), and several others.
InCred focuses on delivering online and offline loans to consumers, small businesses, and the education sector, currently managing a loan book valued at Rs 7,500 crore. It is part of the broader InCred Group, which encompasses various businesses, including wealth and asset management, investment banking through InCred Capital, and retail bonds and alternative investments under InCred Money.
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