InCred Closes Series A Round With Nearly $86 Mn In Funding
Dutch development finance institution FMO led the funding round
The funds will help the company boost its balance sheet lending
InCred will further invest funds in technology development
Mumbai-based digital lending startup InCred has closed its Series A round at $85.89 Mn (INR 600 Cr). The funding round was led by Dutch development finance institution FMO with participation from US-based asset manager Moore Capital, India/Latin America-focused PE fund Elevar, and Alpha Capital.
The funds will help the company boost its balance sheet lending. It will also help InCred in making further investments in technology initiatives to drive analytics and risk management capabilities.
Bhupinder Singh founded InCred in 2016 to offer a simplified lending platform. The startup offers various types of loans, including personal, home, education, SME, and two-wheeler loans.
The startup also has a business footprint across more than 20 cities in India and envisages deeper penetration in these markets, while also expanding to a number of Tier 3 cities.
This comes after reports surfaced in July 2018 that InCred has received Reserve Bank of India's (RBI) approval for the wholesale business which will be housed under a separate entity and is in the process of raising fresh equity.
In terms of financial performance, InCred recorded a 55X jump in consolidated revenue reaching INR 132.44 Cr in FY18 with a profit of INR 9.38 Cr.
InCred challenges players such as Lendingkart and Aye Finance. Here are a few recent fundings in the sector:
- April 2019: Bengaluru-based digital lending startup ZestMoney raised $20 Mn in a fresh funding round led by Washington DC-headquartered fintech investor Quona Capital
- April 2019: Bengaluru-based full-stack consumer lending company Credy raised an undisclosed amount in a Pre-Series A round of funding.
- January 2019: Pune-based online lending startup LoanTap raised $8 Mn (INR 57.9 Cr) from a combination of debt and equity for its fifth funding round which was led by early stage venture capital fund 3one4 Capital.
- January 2019: Fintech lending company Aye Finance raised $10 Mn (INR 71.32 Cr) in a debt funding round from global impact investment manager, responsAbility and Northern Arc, through the issuance of non-convertible debentures
Inc42 in its Annual Tech Startup Funding report 2018 noted that fintech startups raised $1.4 Bn across 121 deals in the year with top-five funding grossers being PolicyBazaar, Pine Labs, LendingKart, PhonePe and ClearTax.
Further, Inc42 DataLabs noted that lending tech is gaining ground and became the third most significant sector in terms of funding. As one of the most active sector, fintech players are under scrutiny of performing as expected and showing larger level of growth. InCred in its heydays has been one of the most active player and continues to stand its ground in the cut-throat competition.