The Indian startup ecosystem has witnessed the ascent of another unicorn with InCred Finance securing its place as India’s second unicorn of the year 2023, following the rapid grocery delivery startup, Zepto. Amidst a challenging climate for capital fundraising, InCred Finance’s achievement has injected a fresh dose of optimism into the market, demonstrating the sustained investor confidence in the Indian startup landscape.
The CEO of InCred Finance expressed gratitude and outlined the strategic importance of this funding round: “This funding marks a significant milestone in our journey and takes us into the ranks of Unicorns. We are deeply grateful for the overwhelming support our investors have shown. This equity capital will help us take advantage of these opportunities, strengthen our balance sheet, and provide us enough runway for the next couple of years of expansion,” remarked Bhupinder Singh.
InCred Financial Services Ltd., which operates under the InCred Group umbrella, has successfully raised Rs 500 crore in its Series D funding round. This infusion of funds catapults the company’s valuation to approximately Rs 8,800 crore, or $1.05 billion. The investors’ identities have been kept under wraps, but it is known that they include a notable list comprising family offices, corporate treasuries, ultra-high-net-worth individuals, and a renowned global private equity (PE) fund.
Significant contributions to the Series D funding round were received from prominent figures and entities. Ranjan Pai of MEMG led the investment with a generous USD 9 million, while Ravi Pillai, Chairman of RP Group of Companies, and Ram Nayak, Global Co-Head of the Investment Bank and Head of Fixed Income and Currencies at Deutsche Bank, contributed USD 5.4 million and USD 1.2 million, respectively. The round witnessed substantial participation from affluent individuals, family offices, and institutional investors such as Varanium Capital Advisors and Sattva Group.
With the capital now at their disposal, InCred plans to channel it judiciously across its key business verticals, which include Consumer Loans, Student Loans, and Micro, Small, and Medium Enterprise (MSME) Lending. All these segments have shown robust growth and are poised for further expansion with the fresh funding.
Bhupinder Singh, the man at the helm of InCred, is not new to the financial services sector. Prior to founding InCred, he led the Corporate Finance division at Deutsche Bank and co-headed its Fixed Income, Equities, and Investment Banking divisions for the Asia Pacific region. Singh’s profound expertise is also backed by his status as an alumnus of the Indian Institute of Management Ahmedabad, revealed by his LinkedIn profile.
This strategic move by InCred Finance comes at a pivotal juncture for the fintech sector and the broader startup ecosystem in India. As companies grapple with the macroeconomic headwinds and a more stringent fundraising environment, InCred’s successful funding round demonstrates the potential for growth and sustainability in the fintech industry. It also sheds light on the critical role of strong leadership and the significance of institutional backing in navigating the market’s complexities and seizing growth opportunities.
InCred’s journey to the unicorn status is thus a testament to perseverance, innovation, and the ability to cultivate trust and confidence among investors even in times of uncertainty. As the company looks to its future expansion, the startup community watches closely, hoping to draw inspiration and lessons from InCred’s path to success.
