InCred, the holding company of InCred Financial Services, a new age financial services company, has secured commitments totalling Rs 500 crore in its latest round of equity funding. The fintech has entered into the unicorn club after the fresh fundraise.
The equity round garnered interest from various investors, including a global Private Equity Fund, Corporate Treasuries, Family Offices and UHNIs, showcasing overwhelming support from the investor community.
InCred said in a statement that the equity capital of Rs 500 crore will be strategically deployed across InCred’s core business verticals: Consumer Loans, Student Loans and MSME Lending, all three of which have seen strong growth. The market for Student Loans in India has surged, driven by the doubling of US student visas issued to Indians from 50,000 to 100,000 over the past two years. The MSME business is seeing substantial growth, particularly in the secured LAP market nationwide. Finally, the Consumer Lending business is benefitting from healthy demand driven by overall economic growth as well as the usual festive season boost.
Bhupinder Singh, Founder and Group CEO of InCred, said, “This funding commitment 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. With our ‘Risk First’ approach, cutting-edge technology, and class-leading management team, we are well-positioned for sustained growth in the business over the years to come. Our goal is to make InCred a central part of every Indian family’s financial aspirations, in line with the powerful growth seen by the Indian economy, and to eventually list the business unlocking significant value for all our shareholders.”
InCred Finance claims that it has seen rapid growth since inception, building about Rs 7,500 crore loan book within six years, and a growth CAGR of over 50 per cent over the last three years. The company has also seen a sharp positive trajectory in profitability with pre-tax RoA in H1-24 at a class leading 5+ per cent, and a PBT of about Rs 170 crore.
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