InCred raises $60 mn, becomes India’s 2nd unicorn of 2023

New Delhi: Ending the drought, fintech lender InCred has become India’s second unicorn this year after raising $60 million from new and existing investors, the media reported on Monday.

According to an Entrackr report, InCred Wealth, the wealth management subsidiary of InCred, led the funding round with investing $36.76 million, followed by MEMG Family Office at $9 million.

Ravi Pillai, Chairman at RP Group of Companies, and Ram Nayak, Co-Head of Deutsche Bank, invested $5.4 million and $1.2 million, respectively, according to the report.

InCred Special Opportunities Fund VCC, Singapore-registered entity of InCred, Varanium Capital Advisors and NABS Vriddhii also participated in the round. With this funding, InCred is now valued at $1.03 billion.

The firm last raised $68 million in a debt funding round from public sector banks and public financial institutions. InCred logged 77.4 per cent growth in operating scale to Rs 865.6 crore during FY23 as compared to Rs 488 crore in FY22.

Zomato last year entered into a strategic partnership with fintech lender InCred for "hassle-free" credit facilities.

Apart from its SME loans which comprises working capital loans, term loans, and channel finance, the product portfolio of InCred also includes personal loans -- wedding loans, medical loans, and travel loans -- and education loans.

The birth of a new unicorn in the country comes as funding in India's tech startup ecosystem in 2023 has been the lowest in the last five years. The year received $7 billion in total funding until December 5, a significant decline of 72 per cent, compared to $25 billion in the previous year.

The funding declined across all stages, with late-stage funding dropping over 73 per cent, followed by early-stage funding (70 per cent) and seed-stage funding (60 per cent), according to leading global market intelligence platform Tracxn.