InCred raises $5.9 Mn in its third debt round in three months

Consumer and small and medium enterprises focused digital lending app InCred has had an incredible record of raising equity rounds from top individual investors, private equity firms and the company's founder since its inception in 2016.

After raising over $200 million, including an $85 million Series A round in April from the likes of former co-CEO of Deutsche Bank, asset manager Moore Capital and Paragon Partners, InCred has raised three back to back debt funding rounds in the last three months.

The latest round is worth Rs 42 crore ~ $5.9 million. According to RoC filings with the MCA, the Mumbai-based non-banking finance company has issued 257 fully paid, rated, redeemable Non-Convertible Debentures (NCD’s) to 39 allottees at par face value of Rs 10,00,000 each in two different tranches to raise a total debt of Rs 41.9 crore.

The new debt funding for InCred has come after Rs 31.4 crore in November and Rs 15 crore in October. All Non-Convertible-Debentures (NCDs) have been invested at the same face value as mentioned above.

Centrum Management, which has invested Rs 19.5 crore, was the top contributor in the fresh debt funding round which saw participation from Ajay Bahl, Devendra Motilal Kothari, MC Davar Holdings, Sudhir Nambiar, Santosh Singh, Bhavna Bahl and MC Davar Holdings, among others.

While such successful fundraises for an NBFC reflects the capability to run a business smoothly, picking up back-to-back debt funds from over 90 investors raises a question on InCred's early backers.

InCred is counted amongst leading NBFCs such as IndiaLends, Capitalfloat, Lendingkart and Aye Finance, which have raised decent capital in the form of equity and debt.

For InCred, the financial year ended on March 31, 2018, had closed on a good note. Led by Bhupinder Singh, the firm had recorded a 55X jump in consolidated revenue to Rs 132.44 crore in FY18. The company was also profitable in the fiscal. 

The company's financial report for FY19 will give us a better picture of its future plan.

InCred partners with online and offline platforms to leverage business data for consumer lending. The company primarily offers four products - personal loan, educational loan, SME business loan and two-wheeler loan.

For the past six months, the firm has been boosting its balance sheet lending and investing in tech to strengthen its analytics and risk management capabilities.

Recently, InCred had acquired the Dubai arm of L&T Capital’s wealth management business. With the acquisition, it also forayed into asset management, wealth management, and investment banking - through InCred Capital.