InCred Financial Services Ltd said it has raised Rs 600 crore ($86 million at current exchange rate) -- significantly big for a Series A round -- in a funding transaction led by Dutch development bank FMO.
News of the development comes more than two months after VCCircle first reported that FMO had committed Rs 256 crore (around $36 million then) to the non-banking financial company (NBFC) backed by private equity firms and former Deutsche Bank co-chief executive Anshu Jain.
Other investors in the round include US-based asset manager Moore Strategic Ventures, social-impact venture capital firm Elevar Equity, and early backer Alpha Capital. The total equity capital of the company is over Rs 1,000 crore.
The NBFC plans to use this capital to boost its balance-sheet lending, as well as to make further investments in technology initiatives to drive analytics and risk management capabilities.
InCred has a presence across more than 20 cities in India and plans to expand to a number of Tier-III cities.
Chief executive and founder Bhupinder Singh said, “Urban migration, increasing disposable incomes, and digitisation have brought India close to the tipping point of rapid growth in financial services. This will create a massive gap between the demand and supply of credit across all strata of society.”
In 2016, the company had raised Rs 550 crore from Singh, Jain, Manipal Group chief executive Ranjan Pai, Dalmia Group Holdings chairman Gaurav Dalmia, Alpha Capital, and others.
The Mumbai-based company launched operations in January 2017.
The firm disburses four types of loans -- personal, education, home and SME (small and medium enterprise). InCred Financial Services Ltd is the legal entity that owns the NBFC licence, while Bee Secure Home Finance Pvt. Ltd is a housing finance company (HFC).
Last month, VCCircle reported that a private-sector lender had emerged as the front-runner to acquire the housing finance unit of InCred.