InCred Finance’s founder Bhupinder Singh, along with InCred’s private equity (PE) investors including Siddharth Parekh’s Paragon Partners, has invested $42mn(300 crore) to incubate a new business under the InCred platform, said two people aware of the development
Bengaluru, 20th Nov, 2018. RedNewswire/-
InCred is a Consumer and small and medium-sized enterprise (SME)-focused lender, founded in 2016 by former Deutsche Bank senior executive Bhupinder Singh. Its backers include former Deutsche Bank co-chief executive officer Anshu Jain, Manipal Group’s managing director and CEO Ranjan R. Pai, and Gaurav Dalmia, founder and chairman of Landmark Holdings (Dalmia Group). InCred focuses on four lending verticals: affordable housing, small and medium enterprises, education and consumer finance.
“Bhupinder Singh and some of his PE backers such as Paragon Partners, founded by Siddharth Parekh, have pooled together an investment of over Rs 300 crore to help InCred diversify its business from its existing mainstay business of retail and SME lending. While Singh has invested around Rs 40 crore, Paragon Partners has invested Rs 50 crore. Several high net-worth individuals have also invested alongside them,” said one of the two people cited above, requesting anonymity, as he is not authorized to speak to reporters.
InCred with this money is expected by the investors to incubate new businesses. Incred has raised about $75 million in 2016 led by Anshu Jain and it was in talks to raise Rs 1000 crore via equity selling in September this year. Parekh’s Paragon Partners is already an investor in InCred. In March last year, the PE fund invested around ₹25 crore in the company.
Also in October 2016, InCred raised equity investment from PE firm IDFC Alternatives which brought close to 10% stake for ₹80 crore, valuing the company at about ₹800 crore.