A digital lending start-up based in Mumbai, InCred has successfully raised a funding round of INR 300 crore ($41.9 million) from the company’s private equity investors including Siddharth Parekh’s Paragon Partners and the private founder, Mr. Bhupinder Singh. The company’s major focus is on the four lending verticals including small and medium enterprises, affordable housing, consumer and education finance.
Founder in the year 2016, InCred is backed by Manipal Group’s managing director and CEO, Mr. Ranjan Pai, co-chief executive officer, Deutsche Bank, Anshu Jain, and the founder and chairman of Landmark Holdings-Dalmia Group, Gaurab Dalmia. The lending start-up is recognized for offering several type of loans including home, educations, personal, two-wheeler loans, and SMEs along with a simplified lending platform.
Mr. Singh has contributed around INR 40 crore ($5.59 million) share while nearly INR 40 crore ($6.99 million) were provided by Paragon Partners. The remaining investment was raised from the high net-worth individuals. This raised investment of INR 300 crore would help the lending firm in diversifying its business successfully and move ahead of the present mainstay business of SME lending and retail.
These investments would further strengthen the business offerings of InCred and create a robust business strategy in dealing with its competitors in the market which include Qbera, OptaCredit, Lendingkart, IndiaLends, LoanTap, among many others.
Investments in the startup company showcase the increasing financial support that private equity investors offer for the profitable business. Private equity investor, Paragon Partners have been an investor in InCred earlier, where the company invested a fund of INR 25 crore in March, a year earlier. InCred has been raising funds from private equity firms for a while now where a private equity firm, IDFC Alternatives, in October 2016, brought nearly 10 percent stake for INR 80 crore that valued about 800 crore for the company.
The Indian financial services industry has witnessed exceeding interest by the private equities irrespective of issues such as financial frauds, and non-performing assets noticed in the banking sector of India. The continual faith and investments by these private equity investors would possibly transform the current scenario and reflect major opportunities in the forthcoming future. The continual interest of the private equity investors would also strengthen the financial position of the Indian business sector