InCred Finance raises ₹500 crore, turns unicorn
- The latest development comes 16 months after the firm completed its merger with American PE giant KKR’s local non-banking finance arm
Bengaluru: InCred Financial Services Ltd (InCred Finance), the lending arm of financial services firm InCred Group, has raised ₹500 crore in its Series D round of funding, becoming the second startup to join the coveted ‘unicorn’ club this year after quick commerce firm Zepto.
The latest round values InCred Financial at about ₹8,800 crore or $1.05 billion. The company did not identify the investors, but said they include a global private equity (PE) fund, corporate treasuries, family offices and ultra-high-net-worth individuals.
The latest development comes 16 months after the firm completed its merger with American PE giant KKR’s local non-banking finance arm in July last year in an all-stock deal.
InCred Financial Services was formed by the merger of KKR India Financial Services Ltd and the erstwhile InCred Financial. KKR, along with two other investors, the Teacher Retirement System of Texas and the Abu Dhabi Investment Authority, together hold a little more than a third of stake in the merged entity.
InCred Finance said it plans to use the capital across its core business verticals—consumer loans, student loans and MSME (micro, small and medium enterprises) lending.
“This funding commitment marks a significant milestone in our journey and takes us into the ranks of unicorns,” said Bhupinder Singh, founder and group CEO of InCred.
“Our goal is to make InCred a central part of every Indian family’s financial aspirations and to eventually list the business, unlocking significant value for all our shareholders,” he added.
A former Deutsche Bank executive, Singh founded InCred Finance in 2016 as a tech-enabled lending platform. It also counts Investcorp, Oaks Asset Management, Moore Capital, Elevar Equity, Paragon Partners, Manipal Group chairman Ranjan Pai and Gaurav Dalmia, the founding chairman of Landmark Holdings (Dalmia Group), among others, as its investors.
InCred is a new-age lender offering online and offline loans to consumers, small businesses and for education. It manages a loan book of ₹7,500 crore.
The firm is a part of the larger InCred Group, which also has businesses spanning wealth and asset management, investment banking (InCred Capital) and retail bonds and alternative investments (InCred Money).
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First Published:9 Nov 2023, 11:56 PM IST
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