Exclusive: InCred Capital to raise $50 Mn led by family offices

InCred Capital, the wealth and institutional arm of the InCred Group, is in advanced discussions to raise $50 million, according to two sources familiar with the details of the deal. 

“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.

As a full-stack financial services platform, InCred Capital integrates wealth management, asset management, M&A, capital markets, equity research and broking, as well as equity derivatives.

InCred Capital’s investment banking division has been in the news recently for several notable transactions, including capital raises for Oyo, E2E, Ugro, and Indiabulls. The platform has amassed over $5 billion in AUM, spanning family offices, high net worth individuals, corporate treasuries, and institutional clients.

Lead investors in InCred Capital’s new round include Ranjan Pai, through the Manipal family office, the Motherson Sumi family office, MMG family office, as well as the founder Bhupinder Singh himself, according to another source who also spoke on the condition of anonymity. “The company’s valuation is expected to range between $550 million and $600 million,” said the above-mentioned source.

Entrackr’s queries to InCred on Friday remained unanswered at the time of publication, while inquiries to the aforementioned investor did not receive immediate responses.

InCred Group’s lending arm, InCred Finance, was one of two companies to achieve unicorn status in 2023, raising $60 million in a Series D round led by Ranjan Pai of MEMG and others. Entrackr had exclusively reported on the firm’s unicorn round, which valued the company at $1.03 billion.

In FY24, InCred Finance’s assets under management (AUM) saw a 49% increase, exceeding Rs 9,000 crore across personal, MSME, and educational loans, with overseas education loans experiencing rapid growth. In an interview with Entrackr, InCred Group founder and CEO Bhupinder Singh highlighted the strong demand for studying abroad, fueled by better exposure and overall growth prospects.

In 2022, InCred Finance completed a reverse merger with KKR India’s credit arm, acquiring KKR’s corporate loan book. However, the corporate loan book was wound down shortly after, allowing InCred to shift its focus to building a tech-enabled retail and MSME franchise.