<article>Dutch development bank <a href="https://www.dealstreetasia.com/?s=FMO">FMO</a> has proposed a $36-million equity investment in Mumbai-based lender <a href="https://www.dealstreetasia.com/?s=InCred%20Finance">InCred Finance</a> to support the SME-focused non-banking financing firm&#8217;s next growth stage.</article>

Dutch development bank <a href="https://www.dealstreetasia.com/?s=FMO">FMO</a> has proposed a $36-million equity investment in Mumbai-based lender <a href="https://www.dealstreetasia.com/?s=InCred%20Finance">InCred Finance</a> to support the SME-focused non-banking financing firm&#8217;s next growth stage.
In a disclosure, FMO said the equity investment it is contemplating will provide the capital buffer needed to grow InCred&#8217;s loan book. InCred started lending in 2017 and is rapidly growing and profitable since its first year of operations.
InCred focuses on four lending verticals: affordable housing, small and medium enterprises, education and consumer finance. Since its launch till the end of October last year, InCred has lent nearly $16 million to over 1,000 borrowers.
“InCred’s model leverages on cutting edge technology and data science to increase access to finance and make financial services for its customers quick and easy,” FMO said.
InCred has so far raised a total of $116.9 million in funding over two rounds, with the latest funding cornering $41.9 million in November 2018.
The lender was founded 2016 by former Deutsche Bank senior executive Bhupinder Singh. Its backers include former Deutsche Bank co-CEO Anshu Jain, Manipal Group’s managing director and CEO Ranjan R. Pai, and Gaurav Dalmia, founder and chairman of Landmark Holdings (Dalmia Group).
FMO, meanwhile, is focused on supporting sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
The bank has an investment portfolio of $10.4 billion, 28 per cent of which is exposed to Asia. It focuses on developing markets, covering sectors such as financial institutions, energy, and agribusiness.
In February, FMO led the $15.2-million Series B funding round in Singapore-based P2P lending platform <a href="https://www.dealstreetasia.com/?s=Validus%20Capital">Validus Capital</a>, marking FMO&#8217;s first fintech investment in Southeast Asia.
FMO was founded in 1970 and is a public-private partnership, with 51 per cent of its shares held by the Dutch State and 49 per cent held by commercial banks, trade unions and other members of the private sector. FMO has a triple A rating from both Fitch and Standard &amp; Poor’s.
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Dutch development bank FMO has proposed a $36-million equity investment in Mumbai-based lender InCred Finance to support the SME-focused non-banking financing firm's next growth stage.

Dutch bank FMO proposes $36m investment in Indian lender

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Dutch bank FMO proposes $36m investment in Indian lender

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