India’s fintech sector continues to flourish as InCred achieves a valuation exceeding 1 billion dollars, solidifying its status as the latest unicorn in the country. This remarkable milestone was reached following a successful funding round that raised an impressive $60 million, placing the company’s valuation at 1.04 billion dollars. Notably, InCred becomes the second unicorn of the year, following in the footsteps of e-commerce platform Zepto. The funding round, which amounted to approximately ₹500 crore, attracted investments from notable individuals and institutions, further fueling InCred’s growth and expansion in the fintech space.
The Funding Round and Investors
The funding round was led by Ranjan Pai of MEMG, a prominent investor who injected 9 million dollars into InCred. Ravi Pillai, the chairman of RP Group of Companies, also displayed confidence in the company, investing 5.4 million dollars. In addition, Ram Nayak, Global Co-Head of the Investment Bank and Head of Fixed Income & Currencies at Deutsche Bank, contributed 1.2 million dollars to the funding round. This remarkable show of support from industry experts and experienced investors further solidifies InCred’s standing and paves the way for its future success.
Institutional investors such as Varanium Capital Advisors and Sattva Group also participated in the funding round, demonstrating the widespread appeal and potential of InCred’s business model. Moreover, several family offices of high-net-worth individuals recognized the promising prospects of InCred, leading to their active involvement in the funding round.
Utilization of Funds and Business Verticals
InCred has outlined a strategic plan to utilize the raised capital to expand its business verticals, particularly in the areas of consumer loans, student loans, and lending to micro, small, and medium enterprises (MSMEs). The infusion of funds will enable InCred to tap into these market segments and provide much-needed financial solutions to individuals and businesses across the country.
InCred’s CEO, Bhupinder Singh, expressed gratitude for the overwhelming support from investors, acknowledging that this funding round marks a significant milestone in their journey. Singh further highlighted the importance of this equity capital, stating that it will not only strengthen their balance sheet but also provide the necessary runway for the next phase of expansion over the coming years.
InCred’s Journey and Merger with KKR India Financial Services
In 2022, InCred Finance and KKR India Financial Services merged to create a joint entity under the brand name InCred Finance. This strategic move positioned InCred as a formidable player in the fintech industry, leveraging the expertise and resources of both entities to drive innovation and deliver exceptional financial services to their customers.
With a loan portfolio totaling ₹7,500 crore built within a span of six years, InCred Finance has showcased remarkable growth, achieving a compound annual growth rate of over 50% in the last three years. This impressive track record further solidifies InCred’s position as a leading player in the Indian fintech landscape, and the recent unicorn valuation is a testament to their success.
The Significance of Achieving Unicorn Status
In a challenging funding climate, InCred joins Zepto as the only companies to achieve unicorn status in 2023. Zepto, an instant grocery startup, secured additional funding in August, elevating its valuation to an impressive 1.4 billion dollars. The fact that InCred has attained unicorn status in such a competitive environment speaks volumes about their business model, growth potential, and the confidence investors have in their vision.
The Future of InCred and the Indian Fintech Landscape
As InCred continues its journey as a unicorn in the Indian fintech space, the future looks promising. The infusion of funds will enable the company to further strengthen its offerings, expand its reach, and provide innovative financial solutions to a wider customer base.
The achievement of unicorn status by InCred and Zepto showcases the resilience and potential of the Indian fintech sector. These milestones not only attract attention from investors but also highlight the significant role fintech plays in driving economic growth and financial inclusion in the country.
As the fintech industry continues to evolve and disrupt traditional financial services, companies like InCred are at the forefront of this transformation. With their innovative products, digital solutions, and customer-centric approach, InCred is poised to make a lasting impact on the Indian financial landscape.
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