InCred Holding, the company under InCred Financial Service has recently announced a 500 crore raising from equity funding from various sources. This latest round will promote InCred in the status of an unicorn. On completion of this funding, InCred was the second Indian Startup to join the unicorn Club in 2023, after Zepto.
Though the source of the funds is not clear, the undisclosed set of investors are treasuries, family offices, and ultra-high net-worth individuals. The post-money valuation is still not disclosed by the company. But it is clear to them that this money will be applied to its core business verticals like consumer loans, student loans, MSME Lending Etc. The company said the student loan market has surged in India in the last few years. Along with this, The MSME business is seeing substantial growth, especially in the secured loan against property market. These consumer lending businesses directly and indirectly contribute to overall economic growth. The company said it has built a loan of around 7500 crore in the past six years and happily enjoyed a 50 % compound growth rate for the last three years.
After the foundation in 2016, the lending business of InCred group started working as a new-age tech-based lending institute. Its business verticals included consumer loans, student loans, and MSME Lending. The CEO and Founder Mr. Bhupinder Singh said they wanted to make Cred a central part of the Indian family’s financial aspiration. With the Risk-first approach, cutting-edge technology, and a high-class management team, he believes they will succeed more and eventually list the business with significant value for all shareholders.InCred Group operates the business of the BFSI sector in three entities- InCred Finance in lending to SMEs, Merchants, etc., InCred Capital in wealth and asset management, investment banking, etc., and InCred Money in retail bonds and alternative investments.
The equity round was led by Ranjan Pai of MEMG who invested $9 million followed by Ravi Pillai who is the chairman of RP Group of companies, invested $5.4 million. Other than these Ram Nayak, Global Co-head of the Investment Bank and head of Fixed Income & currencies at Deutsche Bank, invested $1.2 million. But the other investors are still unknown.
According to the data platform Statista, Digital lending is one of the fastest-growing fintech segments in India. In 2012 it was $9 billion, in 2020 it was $150 billion and it is estimated that by 2023 it will be $350 billion. However, after the rising risk by reserve banks, for personal loans, loans to NBFCs, and credit cards, the growth of this segment may be affected.