In a remarkable achievement for the Indian fintech sector, InCred has officially gained unicorn status after successfully raising $60 million in a Series D funding round. This milestone makes InCred the second company to achieve unicorn status this year, following Quick commerce platform Zepto.
The Mumbai-based non-banking finance company (NBFC) InCred, known for its impactful presence in the financial sector, has shown a significant trajectory of growth and innovation. The recent funding round was led by prominent figures like Ranjan Pai of MEMG, who invested $9 million. Other notable investors included Ravi Pillai, Chairman at RP Group of Companies, and Ram Nayak, Global Co-Head of the Investment Bank and Head of Fixed Income & Currencies at Deutsche Bank, contributing $5.4 million and $1.2 million, respectively. This round also witnessed participation from several large ultra-high-net-worth individuals, Family Offices, and institutional investors such as Varanium Capital Advisors and Sattva Group.
Following this latest round of funding, InCred’s valuation soared to $1.04 billion. The infusion of capital marks a significant step in the company’s journey, bolstering its financial position and providing a solid foundation for future expansion. The equity capital of Rs 500 crores, equivalent to the $60 million raised, will be strategically deployed across InCred’s core business verticals: Consumer Loans, Student Loans, and MSME Lending. These sectors have shown robust growth, reflecting the company’s strong market positioning and innovative approach.
InCred’s financial performance has been noteworthy, with a 77.4% growth in operating scale to Rs 865.6 crore during the last fiscal year (FY23), compared to Rs 488 crore in FY22. The company’s profits also saw a substantial increase, jumping 3.5 times to Rs 109 crore in FY23 from Rs 30.8 crore in FY22. The first half of FY24 reported a profit before tax of Rs 170 crore, indicating a strong upward trend in the company’s financial health.
Additionally, last month, InCred made a strategic decision to enter the insurance business, further diversifying its portfolio and expanding its market reach. This decision aligns with the company’s growth strategy and its commitment to exploring new avenues for development and customer service enhancement.
The achievement of unicorn status by InCred not only signifies the company’s individual success but also reflects the vibrant and dynamic nature of India’s startup ecosystem. The year 2022 saw 26 startups achieving unicorn status, while 2021 had an impressive tally of 44. InCred’s rise to unicorn status amid such a competitive and innovative environment underscores the company’s resilience, strategic vision, and commitment to excellence.