(iStock)
(iStock)

InCred raises Rs600 crore from FMO, others

  • The latest funding round will increase the total equity capital of the company to over Rs1,000 crore
  • The NBFC plans to use this capital to boost its balance sheet lending

MUMBAI: Former Deutsche Bank senior executive Bhupinder Singh’s NBFC InCred on Monday said that it has raised Rs600 crore in a funding round led by Dutch development finance institution FMO, the lender said in a statement.

The round also saw participation from US-based asset manager Moore Capital, India and Latin America-focused PE fund Elevar, and Alpha Capital, an existing investor of InCred.

The latest funding round will increase the total equity capital of the company to over Rs1,000 crore, the statement said. The NBFC plans to use this capital to boost its balance sheet lending, as well as in making further investments in technology initiatives to drive analytics and risk management capabilities.

“Urban migration, increasing disposable incomes, and digitization has brought India close to the tipping point of rapid growth in financial services. This will create a massive gap between the demand and supply of credit across all strata of society. Financial institutions that can use technology to deliver innovative products with quality customer experience are best placed to serve this gap," said Singh, chief executive and founder of InCred.

Singh added that the key to long term success will be laser-sharp focus on risk management through a combination of analytics and traditional underwriting.

InCred already has a presence across more than 20 cities in India and envisages deeper penetration in these markets, while also expanding to a number of tier 3 cities.

This is InCred’s first funding round since 2016 when it raised Rs550 crore from Anshu Jain, former Co-CEO, Deutsche Bank, Dr. Ranjan Pai, managing director and CEO, Manipal Group, Gaurav Dalmia, chairman, Dalmia Group Holdings) and others.

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