InCred Holdings, the parent company of the renowned financial services entity InCred Financial Services, has unveiled its plans to raise a substantial Rs 500 crore in a Series D round of equity funding. This investment round is set to receive backing from an eclectic group of investors, including a global private equity fund, corporate treasuries, family offices, and high-net-worth individuals. Notably, the identities of these investors have been kept confidential. InCred has projected that this funding round will propel the company into the coveted unicorn status, although the specific post-money valuation remains undisclosed.
The capital procured from this funding will be strategically channeled into InCred's core business verticals, encompassing consumer loans, student loans, and MSME lending.
InCred has highlighted the remarkable surge in the Indian student loans market, attributing it to the doubling of US student visas issued to Indian students, surging from 50,000 to 100,000 over the past two years. Simultaneously, the MSME sector is experiencing substantial growth, particularly in the secured LAP (loan against property) segment across the nation. The consumer lending sector is thriving on robust demand, driven by overall economic growth and the customary boost during the festive season.
Bhupinder Singh, Founder & Group CEO of InCred, expressed, “With our ‘Risk First’ approach, cutting-edge technology, and a class-leading management team, we are well-positioned for sustained business growth in the years to come. Our objective is to make InCred an integral part of every Indian family's financial aspirations, aligning with the robust growth witnessed by the Indian economy, and eventually listing the business to unlock substantial value for all our shareholders.”
InCred has established a loan book of approximately Rs 7,500 crore within a span of six years, boasting a remarkable compound annual growth rate exceeding 50% over the last three years.
Operating across the BFSI sector, InCred Group operates through three distinct entities – InCred Finance, catering to SMEs and merchants; InCred Capital, specializing in wealth and asset management, investment banking, and equities; and InCred Money, focusing on retail bonds and alternative investments.
Notably, InCred and global investment firm KKR completed a strategic merger last year in July, bringing together InCred Financial Services and KKR India Financial Services Limited to create a non-banking finance company with enhanced resources to meet the needs of retail borrowers and MSMEs.
InCred Finance has garnered support from notable investors, including Oaks Asset Management, Moore Capital, Investcorp, Elevar Equity, Anshu Jain (former Deutsche Bank chief), Ranjan Pai (Manipal Group chairman), and Gaurav Dalmia, Founder and Chairman of Landmark Holdings, among others.
As competition from banks in vehicle, gold, and home loans intensifies, a growing number of NBFCs are seeking to serve the needs of MSMEs. Fresh unsecured business loans provided by NBFCs have witnessed a remarkable 24% YoY increase, reaching Rs 33,915.3 crore as of March 31, as reported by the Finance Industry Development Council and CRIF High Mark.
