Mumbai-based InCred Finance, a tech-enabled non-banking financial company (NBFC), has raised Rs 600 crore (~ US$85.68 million) in a series A funding round led by FMO, a Dutch development bank based out of The Hague, Netherlands. Other investors who contributed to the round include US-based asset manager Moore Capital, India and Latin America-focused PE fund Elevar, and Alpha Capital.
InCred, which uses uses technology and data science to make lending quick, plans to use the freshly raised fund to boost its balance sheet lending, as well as in making further investments in technology initiatives to drive analytics and risk management capabilities.
Founded in 2016, by Bhupinder Singh, ex-head of the Corporate Finance division of Deutsche Bank, InCred is a financial technology firm that focuses on Consumer Loan, Home Loan, Education Loan, and SME Lending.
Speaking on fundraise, Bhupinder, also CEO of InCred, said, “Urban migration, increasing disposable incomes, and digitisation has brought India close to the tipping point of rapid growth in financial services. This will create a massive gap between the demand and supply of credit across all strata of society.”
“Financial institutions that can use technology to deliver innovative products with quality customer experience are best placed to serve this gap. Key to long term success will be laser-sharp focus on risk management through a combination of analytics and traditional underwriting,” he added.
InCred, which competes with Neogrowth, Capital Float, and Lendingkart, has raised a total of about $175 Mn in funding over three rounds from investors including Anshu Jain (former Co-CEO, Deutsch Bank), Dr Ranjan Pai (MD and CEO, Manipal Group), Gaurav Dalmia (Chairman, Dalmia Group Holdings), and Alpha Capital among others.
The startup has a business footprint in more than 20 cities in India and seeks to go deeper into these markets, while also expanding to a number of tier-3 cities.
In 2015, Incred had acquired InstaPaisa.com, a peer-to-peer lending platform, for undisclosed amount. Incred has former Captain of Indian Cricket Team, Rahul Dravid, as its Brand Ambassador.
Currently, around 11 start-up companies hold NBFC-P2P licences with a total loan book size of around Rs 200 crore. Some of the entities working in this space are Finzy, Faircent, OML Technologies, i2iFunding, Peerlend, LenDenClub, Paisadukaan, LiquiLoans and AnyTimeLoan.
Recently, London-based Welendus, a short-term peer-to-peer (P2P) lending platform, is all set to enter the competitive Indian market of P2P lending. The UK startup has just raised an undisclosed amount in funding which it will use for future expansion into India.
In January, an another Mumbai-based fintech startup, LoanTap, an online platform that offers flexible loan products to salaried professionals, had raised over $8 million in a funding round led by 3one4 Capital.