InCred raises Rs 500 Cr debt from public sector banks and lenders

Fintech platform that provides consumer and MSME loans, InCred has raised Rs 500 crore in a debt funding round from various public sector banks and public financial institutions. The debt issuance took the form of term loans, NCDs (under LTRO and PCG scheme) and market-linked debentures. 

Besides the equity round of $86 million in April 2019, this is the fourth round of debt fund for the Mumbai-based digital lending firm in the past nine months. InCred has an equity base of over 1,000 crore with backing from marquee investors including the Dutch development bank FMO, Moore Capital from the USA, Investcorp Bahrain, Oaks Capital and others including Ranjan Pai of Manipal and Anshu Jain, Ex CEO of Deutsche Bank.

The financing will boost InCred’s lending expansion across select segments in the consumer, education and MSME markets. “InCred is strengthening its funding base to support its growth vision. The recently concluded debt issuance is an endorsement of our business model, risk and analytics philosophy and our prudent ALM policies,” said Vivek Bansal, Group CFO of InCred.

This funding comes soon after the acquihire of Qbera by InCred. Team Qbera is helping InCred to grow its vertical lending focusing on the sub-segment of the salaried class. InCred partners with online and offline platforms to leverage business data for consumer lending. It has four products – personal loan, educational loan, SME business loan and two-wheeler loan.

According to two Entrackr sources, InCred had pulled the plug from two-wheeler financing a couple of months ago. We had reached out to its chief executive officer Bhupinder Singh in June. At that time, he refused that the vertical was discontinued. “Two-wheeler loan isn’t a focus area for big growth for the future given that we have several other areas that we see as a higher priority,” said Bhupinder.

Non-banking financial corporations such as Lendingkart, Aye Finance, IndiaLends, and Capitalfloat are Incred’s close competitors.