InCred, the emerging fintech player, has recently achieved the prestigious unicorn status in India, joining the elite club of startups valued at over 1 billion dollars. This remarkable milestone was reached following a successful funding round that raised $60 million, effectively positioning InCred’s valuation at an impressive 1.04 billion dollars. The company’s ascent to unicorn status makes it the second Indian unicorn of the year, following the e-commerce platform Zepto.
The funding round, which amounted to $60 million (approximately ₹500 crore), was led by prominent investors, showcasing the growing confidence in InCred’s potential. Notable contributors included Ranjan Pai of MEMG, who spearheaded the round with a substantial $9 million investment, and Ravi Pillai, the chairman of RP Group of Companies, injecting $5.4 million into the venture. Additionally, Ram Nayak, a key figure at Deutsche Bank, displayed confidence in InCred by investing $1.2 million.
The fresh capital infusion is earmarked for the strategic expansion of InCred’s business verticals, with a focus on consumer loans, student loans, and lending to micro, small, and medium enterprises (MSMEs). This funding round saw participation not only from individual high-net-worth family offices but also from institutional investors, including Varanium Capital Advisors and Sattva Group.
InCred’s CEO, Bhupinder Singh, expressed gratitude for the overwhelming support from investors, emphasizing the significance of this funding in propelling the company into the coveted unicorn ranks. Singh highlighted the strategic importance of the equity capital, noting its role in capitalizing on emerging opportunities, fortifying the company’s balance sheet, and providing a substantial runway for the next phase of expansion.
The year 2022 witnessed a pivotal moment for InCred as it merged with KKR India Financial Services to create a joint entity operating under the unified brand name InCred Finance. This strategic move positioned the company for enhanced growth and market presence, setting the stage for its unicorn status in 2023.
The equity capital secured through this funding round will be strategically allocated across InCred’s primary business segments, with a strong emphasis on consumer loans, student loans, and MSME lending. This strategic approach reflects the company’s commitment to diversifying and strengthening its portfolio to capitalize on evolving market trends.
InCred Finance proudly announced the achievement of building a substantial loan portfolio totaling ₹7,500 crore within just six years of its inception. This accomplishment underscores the company’s robust growth trajectory, with an impressive compound annual growth rate (CAGR) of over 50% in the last three years alone.
In a funding landscape marked by challenges and uncertainties in the current year, InCred’s attainment of unicorn status stands out as a testament to its resilience, strategic vision, and market relevance. The company’s success adds vibrancy to India’s startup ecosystem, showcasing its ability to attract significant investment and thrive in a dynamic financial landscape.
While the year 2023 has presented its share of funding challenges, InCred’s journey to unicorn status serves as an inspiring narrative for other aspiring startups. As the fintech sector continues to evolve, InCred is well-positioned to play a pivotal role in shaping the future of financial services in India.
In conclusion, InCred’s successful funding round and unicorn status mark a significant chapter in its growth story. With a strengthened financial position, the company is poised to explore new horizons, capitalize on emerging opportunities, and contribute to the evolution of India’s fintech landscape.
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