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Technology-driven non-banking financial company (NBFC) InCred said on Monday it has successfully concluded its Series A funding round and raised ₹600 crore.
Led by Dutch development finance institution FMO, the funding round witnessed participation of US-based asset manager Moore Capital, India/Latin America-focussed PE fund Elevar, and Alpha Capital, an early-stage investor of InCred.
The latest funding round will increase the total equity capital of the company to over ₹1,000 crore.
The NBFC plans to use this capital to boost its balance-sheet lending, as well as in making further investments in technology initiatives to drive its analytics and risk management capabilities.
InCred already has a footprint across more than 20 cities in India, and envisages deeper penetration in these markets, while also expanding to a number of Tier-III cities, InCred CEO and Founder Bhupinder Singh said in a statement.
Leveraging analytics
Urban migration, increasing disposable income and digitisation have brought India close to the tipping point of rapid growth in financial services.
This will create a gap between the demand and supply of credit across all strata of society, said Singh.
Financial institutions that can use technology to deliver innovative products with quality customer experience are best placed to bridge this gap. The key to long-term success will be focusing on risk management through a combination of analytics and traditional underwriting, he said.
In its Series A funding, some of the factors that drove the investors’ decision to back InCred were its talent pool, experience in financial services and technology, and execution track record.
The investors were also impressed by InCred’s long-term vision of tech-based disruption and its outreach strategy for serving the under-banked segment in the Indian market, Singh added.
This is the first funding round of InCred since 2016, when it raised ₹550 crore from Anshu Jain, former Co-CEO of Deutsche Bank; Bhupinder Singh, former head of corporate finance division of Deutsche Bank; Ranjan Pai, MD and CEO, Manipal Group; Gaurav Dalmia, Chairman, Dalmia Group Holdings; and Alpha Capital alongside others.
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