Mumbai-based fintech firm InCred becomes the second Indian unicorn startup in 2023 through a successful $60 million Series D round, showcasing robust financial performance following in the footsteps of Quick commerce platform Zepto, which raised an impressive $200 million earlier this year.
In November, the nonbanking finance firm (NBFC) said it had commitments from investors to raise INR 500 crore. Meanwhile, it omitted the precise valuation and investor names involved in the round.
InCred got the unicorn status with the funding led by MEMG’s Ranjan Pai, injecting $9 million. This round saw participation from notable investors, including Ravi Pillai of RP Group of Companies and Ram Nayak of Deutsche Bank, reinforcing InCred’s position in the fintech sector.
In August, Zepto made headlines by securing $200 million, propelling it to the coveted unicorn status as the first of 2023. Notably, the previous years witnessed 26 and 44 startups becoming unicorns in 2022 and 2021, respectively, showcasing the dynamic nature of the startup landscape.
Valuation and Stakeholder Landscape
Following the Series D round, unicorn startup InCred now boasts a valuation of $1.03 billion, a testament to its robust financial performance and strategic investments. KKR India Financial Investments is the largest stakeholder with a 31.5 percent share, closely followed by B Singh Holdings at 17.2 percent in this fintech firm.
The fintech firm’s fiscal performance demonstrates a remarkable 77.4 percent growth in operating scale, reaching INR 865.6 crore in FY23 compared to INR 488 crore in FY22. Profits soared 3.5 times, reaching INR 109 crore in FY23 from INR 30.8 crore in FY22. In H1 FY24, the company reported a profit before tax of INR 170 crore.
In a strategic move, InCred, led by Bhupinder Singh, passed a resolution to enter the insurance business, signaling its intent to diversify and expand its service offerings.
As InCred joins the ranks of 2023’s unicorns, the fintech sector remains a hotbed of innovation and investment. With strategic funding, robust financial performance, and a commitment to diversification, InCred’s journey exemplifies the dynamism and resilience of the startup ecosystem.
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