Two sources familiar with the deal’s specifics claim that InCred Capital, the wealth and institutional division of the InCred Group, is in advanced talks to raise $50 million.
“The new funding round is driven by the company’s strong performance in the first half of FY25, with an average revenue run rate of Rs 800 crore and a profit before tax of around Rs 200 crore,” said one of the sources, who requested anonymity as talks are private.
InCred Capital is a full-stack financial services platform that combines equity research and broking, capital markets, wealth management, asset management, M&A, and equity derivatives.
The investment banking branch of InCred Capital has been in the news lately for a number of noteworthy transactions, such as capital raises for Indiabulls, Oyo, E2E, and Ugro. With the help of family offices, high net worth individuals, corporate treasuries, and institutional clients, the platform has amassed over $5 billion in AUM.
Another source who also spoke on the condition of anonymity said that lead investors in InCred Capital’s latest round include Bhupinder Singh, the founder, and Ranjan Pai through the Manipal, Motherson Sumi, and MMG family offices. “The company’s valuation is expected to range between $550 million and $600 million,” said the above-mentioned source.
One of the two businesses to reach unicorn status in 2023 was InCred Group’s lending division, InCred Finance, which raised $60 million in a Series D round headed by MEMG’s Ranjan Pai and others. The company’s $1.03 billion valuation following its unicorn round was the subject of exclusive media coverage.
Assets under management (AUM) for personal, MSME, and education loans at InCred Finance increased by 49% in FY24 to surpass Rs 9,000 crore. Growth in overseas education loans was particularly notable. Bhupinder Singh, the founder and CEO of InCred Group, emphasized in an interview the high demand for studying overseas, driven by increased exposure and overall growth prospects.
After a reverse merger with KKR India’s credit division, InCred Finance acquired KKR’s corporate loan book in 2022. But soon after, the corporate loan book was closed, which gave InCred the opportunity to refocus on developing a tech-enabled retail and MSME franchise.
