Breaking the dry spell, InCred, a fintech lender, has emerged as India's second unicorn of the year by securing a substantial $60 million from both new and existing investors, as reported in the media on Monday.
According to insights from Entrackr, the funding drive was spearheaded by InCred Wealth, the wealth management arm of InCred, contributing an impressive $36.76 million. MEMG Family Office followed suit with a noteworthy investment of $9 million.
Key individual investors included Ravi Pillai, Chairman at RP Group of Companies, injecting $5.4 million, and Ram Nayak, Co-Head of Deutsche Bank, with a contribution of $1.2 million, as detailed in the report.
The investment landscape expanded further with the involvement of InCred Special Opportunities Fund VCC, a Singapore-registered entity of InCred, Varanium Capital Advisors, and NABS Vriddhii. This injection of funds has propelled InCred's valuation to an impressive $1.03 billion.
This financial boost comes on the heels of InCred's previous successful round, where it secured $68 million in debt funding from public sector banks and financial institutions. Notably, InCred witnessed an exceptional 77.4% growth in operating scale, reaching Rs 865.6 crore during FY23, compared to Rs 488 crore in FY22.
InCred's diverse product portfolio spans SME loans, including working capital, term loans, and channel finance, along with personal loans tailored for various needs such as weddings, medical expenses, travel, and education.
It's worth mentioning that InCred established a strategic partnership with Zomato last year, streamlining "hassle-free" credit facilities.
This milestone for InCred as the newest unicorn in India unfolds against the backdrop of a challenging funding environment in the country's tech startup ecosystem. In 2023, total funding reached a mere $7 billion by December 5, marking a substantial 72% decline compared to the previous year's $25 billion.
This funding downturn extends across all stages, with late-stage funding experiencing a sharp 73% drop, followed by early-stage funding at 70%, and seed-stage funding at 60%, according to insights from Tracxn, a leading global market intelligence platform.
(With Agency Inputs)
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