InCred raises big from FMO, others

InCred Financial Services Ltd said it has raised $86 million (Rs 600 crore) - significantly big for a Series A round - in a funding transaction led by Dutch development bank FMO. 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 $143 million (Rs 1,000 crore). The company 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 3 cities. Bhupinder Singh, chief executive and founder, InCred, 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.” The firm disburses four types of loans - personal, education, home and SME (small and medium enterprise).