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Consumer and SME focused lender InCred secures $58 Mn led by NDFC


Update: InCred has totally raised about $85.89 million.

Consumer and small and medium enterprises (SMEs) focused digital lending app – Incred – has raised $58.2 million (Rs 406.63 crore) equity round led by Netherlands Development Finance Company (NDFC). Alpha Capital, V Ocean Investments, Moore Strategic Ventures,  and Vistra ITCL (Debenture Trustee India) also participated in the round.

Alpha Capital has invested around Rs 30 crore while V Oceans poured in Rs 10.88 crore. Moore and Vistra have invested Rs 69 crore and Rs 51.75 crore, according to RoC filings accessed by Entrackr.

For the uninitiated, InCred offers loans to businesses as well as consumers. Its portfolio covers home, education, personal and two-wheelers loans among others for consumers.

Founded by Bhupinder Singh, InCred was also in talks with Naspers, Abu Dhabi Investment Authority, and Advent International for Rs 1,000 crore investment against equity. However, it seems nothing on those fronts has materialised till now.

Instead, the company raised money from elsewhere.

InCred had also issued Equity shares worth Rs 1.4 crores to Rahul Dravid for his endorsement services in June last year.

With this debt round, the Mumbai-based firm has raised about $133 million across debt and equity rounds. Five months ago, it secured about $42 million (Rs 300 crore) led by founder Bhupinder Singh and private equity investors like Paragon Partners. It planned to use those funds for incubating new business.

Financially, the firm had performed brilliantly in FY18. It recorded a 55X jump in consolidated revenue of Rs 132.44 crore in FY18 from Rs 2.41 crore in the previous fiscal.

Meanwhile,  the losses worth Rs 5.33 crore of the group companies in FY17 turned into profits amounting to Rs 9.38 crore in the last fiscal. Turning losses into profits, and that too by a 3.7X margin, is a good sign for InCred.

On the competition front, InCred counts Indialends, Capitalfloat, Lendingkart among several other competitors. Of late, NBFC firms have been facing no difficulty in finding backers. In fact, several local lending startups are returning to raise fresh equity because of the easing of the liquidity situation. Rubique, Capital Float, and Lendingkart are reportedly in discussion to raise larger rounds.

Update: We have updated the post to reflect that it’s an equity round not debt Earlier version of the story wrongly said that it’s a debt round. We regret the error.

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