Exclusive: InCred Finance Bags INR 400 Cr Debt Funding From Morgan Stanley, Others

SUMMARY

While Morgan Stanley India Primary Dealer pumped in INR 300 Cr, Nippon Life India invested INR 50 Cr.

InCred Finance also raised INR 40 Cr in equity from its parent InCred Holdings Ltd

The capital infusion comes as InCred Finance prepares for an IPO worth INR 4,000 Cr to INR 5,000 Cr, expected later this year

InCred Group’s lending arm, InCred Finance, has raised a debt funding of INR 400 Cr (around $46.8 Mn) from Morgan Stanley, Nippon Life India, among others. Besides, it bagged an equity funding of INR 40 Cr from its parent.

As per the unicorn’s MCA filings accessed by Inc42, InCred Finance allotted 40,000 non-convertible debentures (NCDs) for INR 1 Lakh apiece to raise the funding amount. The lending arm has the approvals to raise a debt of up to INR 4,500 Cr.

While Morgan Stanley India Primary Dealer invested INR 300 Cr, Nippon Life India pumped in INR 50 Cr. The remaining INR 50 Cr came from Incred Group’s arms InCred Capital and InCred Wealth.

As per a separate filing, InCred Holdings Ltd, the parent of InCred Finance, made an equity investment of INR 40 Cr (about $4.6 Mn) in the NBFC.

Inc42’s queries to InCred Group on the debt and equity funding didn’t receive any response till the time of publishing this story.

The investment comes amid a series of fundraisers at InCred Group. Last month, Zerodha founders Nikhil and Nithin Kamath invested INR 250 Cr in InCred Holdings.

Earlier this year, Inc42 reported that InCred Finance secured INR 258 Cr debt funding from a group of investors, led by wealth and asset management firm Neo Group, in multiple tranches.

This fresh capital infusion comes as InCred Finance prepares for an IPO worth INR 4,000 Cr to INR 5,000 Cr, expected later this year.

Ahead of the proposed public issue, InCred Finance also acquired TruCap Finance’s gold loan division to diversify its secured lending offerings in February this year

Founded in 2016 by Bhupinder Singh, InCred Group operates across the BFSI sector through three distinct entities – InCred Finance (lending arm), InCred Capital (wealth and asset management) and InCred Money (a B2C and B2B2C digital investment distribution platform).

On the financial front, InCred Finance reported an 18% year-on-year (YoY) rise in its consolidated net profit to INR 374 Cr in FY25. Operating revenue grew 47% to INR 1,871.9 Cr during the year under review from INR 1,269.9 Cr in FY24.