Incred Financial plans to raise $150m to expand its loan book

economictimes.indiatimes.com:

Incred Financial Services (Incred Finance), a retail focused NBFC set up by former senior Deutsche Bank executive Bhupinder Singh, has hit the fundraising street targeting to raise as much as $125-150 million at a valuation of up to $1.5 billion (approximately ₹12,000 crore), said two sources aware of the development. Incred is looking at diluting around 10% stake in this round, the sources added. The funds raised will be used to grow the NBFC's loan book.

«The NBFC is focused on personal loans, education loans and SME loans. The funds to be raised will be used to build upon these loan products and grow the loan book substantially across these segments,» said one of the sourcesAvendus Capital is advising Incred on the fundraise. The advsors has reached out to top global private equity funds including Warburg Pincus, TPG among others but sources added that the deal is in very early days and it is not yet confirmed which investors will proceed for a transaction.

Warburg Pincus and TPG spokesperson declined to comment. «They are looking at bringing in new investors into the company although it is likely that some of the existing investors may eventually also put in some money,» the second source said. Incred is looking at a valuation of between ₹10,000 crore to ₹12,000 crore for this round of capital raising, he added.

Emails sent to Incred did not elicit a response. This will be the first round of fundraising after Incred Finance merged with KKR's structured finance lending unit KKR India Financial Services in June 2022. KKR and its co-investors ADIA and Texas Retirement Systems hold around 34% stake in the merged entity.