InCred Achieves Unicorn Status With $60 Million Funding Round

Fintech player InCred has crossed the coveted unicorn threshold, securing $60 million in its Series D funding round from both existing and new investors. This milestone marks the company as the second to attain unicorn status in the current year, following Zepto’s success.

In November, the Mumbai-based non-banking finance company (NBFC) announced an infusion of Rs 500 crore, although specifics regarding valuation and investor details remained undisclosed.

InCred’s regulatory filings with the Registrar of Companies revealed a special resolution by its board, authorizing the issuance of 3,70,37,037 equity shares at Rs 10 per share and a premium of Rs 125 per share, totaling Rs 500 crore.

The funding round was spearheaded by Ranjan Pai of MEMG, contributing $9 million. Other significant investors included Ravi Pillai, Chairman at RP Group of Companies, with a $5.4 million investment, and Ram Nayak, Global Co-Head of the Investment Bank and Head of Fixed Income & Currencies at Deutsche Bank, injecting $1.2 million. The round also witnessed participation from prominent ultra-high-net-worth individuals, family offices, and institutional investors such as Varanium Capital Advisors and Sattva Group.

Following this infusion, InCred now boasts a valuation of $1.03 billion, according to insights from startup intelligence platform TheKredible.

Post-allocation of shares from the round, KKR India Financial Investments leads the ownership stakes in the company with 31.5%, closely followed by B Singh Holdings holding 17.2%. MEMG Family Office secured 0.87% ownership. (Note: Please visit the provided link for additional details.)

Previously, InCred had secured Rs 500 crore ($68 million at the time) through a debt funding round from various public sector banks and financial institutions.

The company’s operational scale soared by 77.4% to Rs 865.6 crore in the last fiscal year (FY23), a substantial rise from Rs 488 crore in FY22. Moreover, TheKredible reports a staggering 3.5X surge in the company’s profits, soaring to Rs 109 crore in FY23 from Rs 30.8 crore in FY22.

For the first half of FY24, InCred reported a pre-tax profit of Rs 170 crore, showcasing continued robust financial performance.

Recent developments indicate InCred’s strategic intent to venture into the insurance domain, as highlighted in an exclusive report by Entrackr.

Notably, Zepto, a quick commerce platform, kickstarted 2023 by raising an impressive $200 million, clinching the first unicorn status. It’s worth mentioning that in 2022 and 2021, the numbers of startups reaching unicorn status were 26 and 44, respectively.