InCred Financial Services Ltd, the lending arm of InCred Group, has secured Rs 500 crore in its Series D funding round, catapulting the fintech startup into the coveted 'unicorn' club. This achievement makes it the second Indian startup to attain unicorn status this year, following Zepto's recent funding success. The Series D funding round values InCred Financial at around Rs 8,800 crore or $1.05 billion. Although specific investors were not disclosed, the company confirmed a diverse mix, including a global private equity (PE) fund, corporate treasuries, family offices, and ultra-high-net-worth individuals.

This milestone comes 16 months after the completion of the merger between InCred Financial Services and KKR India Financial Services Ltd, the local non-banking finance arm of American private equity giant KKR. The merger, finalized in July of the previous year through an all-stock transaction, resulted in the formation of InCred Financial Services. The ownership of the combined entity is diversified among KKR, the Teacher Retirement System of Texas, the Abu Dhabi Investment Authority, and other investors. KKR and two additional investors collectively hold slightly over one-third of the stake.

The funds raised in this Series D round by InCred Finance will be directed towards its core business areas, including consumer loans, student loans, and lending to micro, small, and medium-sized enterprises (MSMEs). Bhupinder Singh, the founder and group CEO of InCred, expressed his excitement about achieving 'unicorn' status, considering it a significant milestone for the company. He emphasized InCred's commitment to becoming an integral part of every Indian family's financial aspirations. Singh also revealed plans for listing the business, aiming to generate substantial value for all shareholders.

Established in 2016 by Bhupinder Singh, a former Deutsche Bank executive, InCred Finance operates as a tech-enabled lending platform. It has garnered support from notable investors such as Investcorp, Oaks Asset Management, Moore Capital, Elevar Equity, Ranjan Pai (Manipal Group Chairman), Gaurav Dalmia (founding chairman of Landmark Holdings, Dalmia Group), and others. InCred's focus lies in providing online and offline loans to consumers, small businesses, and the education sector. The company presently manages a loan book valued at Rs 7,500 crore. It operates as part of the broader InCred Group, which encompasses various businesses, including wealth and asset management, investment banking through InCred Capital, and retail bonds and alternative investments under InCred Money.