Fintech startup InCred has joined the esteemed unicorn club after successfully closing a $60 million (INR 500 Cr) Series D funding round. The round was led by Ranjan Pai, from Manipal Education and Medical Group, with notable investments from Ravi Pillai of RP Group and Ram Nayak, a senior executive at Deutsche Bank.
InCred’s lending arm achieved a valuation of $1.04 billion in this funding round, marking its entry into the coveted unicorn club for 2023, making it the second Indian startup to achieve this status after Zepto.
The funding infusion is expected to fortify InCred’s three core business verticals—consumer loans, student loans, and MSME lending. Additionally, the capital will be used to enhance the startup’s balance sheet, bolster liquidity, and facilitate expansion plans.
In a statement, InCred’s founder and CEO, Bhupinder Singh, expressed, “This funding marks a significant milestone in our journey and takes us into the ranks of unicorns… This equity capital will help us take advantage of these opportunities, strengthen our balance sheet and provide us (with) enough runway for the next couple of years of expansion.”
The funding round saw participation from ultra-high-net-worth individuals (UHNIs), family offices, and institutional investors such as Varanium Capital Advisors and Sattva Group. The UHNIs and family offices invested through InCred Wealth, the startup’s wealth management vertical.
InCred Finance, a key entity within InCred Group, reported substantial growth across its core verticals. The student loan business experienced a surge due to increasing student visas, while the consumer lending business thrived on healthy demand propelled by overall economic growth.
As of now, InCred Finance boasts a loan book exceeding INR 7,500 Crores, achieving a compounded annual growth rate (CAGR) of over 50% in the last three years. In the fiscal year 2021-22 (FY22), the company recorded a profit before tax (PBT) of INR 42 Crores, which jumped to INR 203 Crores in FY23. In the first half (H1) of FY24, InCred Finance reported a PBT of INR 168 Crores.
This substantial funding round for InCred comes at a time when overall funding numbers in the Indian startup ecosystem have seen a decline. Despite the challenging funding environment, InCred’s achievement reinforces its position as a significant player in the fintech space.
