PC: The Economic Times
InCred Capital, the institutional and wealth arm of the esteemed InCred Group, is in advance negotiations to raise a big $50 million fundraise, according to those in the know of the finer details of the deal. This fundraise is coming in the aftermath of strong first-half FY25 performance by InCred Capital, which put up an average revenue run rate of Rs 800 cr and profit before tax of about Rs 200 cr.
A full stack financial services business with seamless integration of wealth management, asset management, M&A advisory, and capital markets services, equity research, broking, and equity derivatives, InCred Capital is diverse in its offerings. Its investment banking division has recently gained attention through its role in significant transactions like capital raises for top-end entities like Oyo, E2E, Ugro, and Indiabulls.
With an asset base under management, or AUM over $5 billion, InCred Capital caters to a very broad spectrum of clients that include family offices, high net worth individuals, corporate treasuries, and institutional investors. According to reports, lead investors in the round of funding expected for InCred Capital include distinguished names like Ranjan Pai through the Manipal family office, Motherson Sumi family office, MMG family office, and the founder Bhupinder Singh himself. According to sources privy to the development, the valuation of the company is likely to fall in between $550 million and $600 million.
Queries sent to InCred by Entrackr on Friday went unanswered at the time of filing this report. Investors did not respond immediately.
InCred Finance, the lending arm of InCred Group, became a unicorn in 2023, raising a milestone Series D round of $60 million, led by MEMG Ranjan Pai among others. For FY24, InCred Finance witnessed an impressive 49% growth of assets under management AUM, taking it across Rs 9,000 crore for personal, MSME, and educational loans, with a notable increase in overseas education loans.
Bhupinder Singh, the fabulous founder and CEO of the group, recently pointed out to an interview with Entrackr that the demand for overseas education is increasing due to increased exposure and the promising prospects of growth. It had also strategically acquired, in 2022, the corporate loan book of KKR India’s credit arm through reverse merger with InCred Finance. However, the corporate loan book was phased out over time and gave room for InCred to refocus on forming a tech-enabled retail and MSME franchise.
The larger $50 million InCred Capital funding deal further confirmation of the company trajectory in expansion and market position that would enable further expansion and innovation in the rapidly changing financial services world.
