Mumbai based Online Lender InCred Acquires Fintech Platform Qbera

Mumbai based online lender InCred has reportedly acquired Fintech platform Qbera.

The acquisition has come as India struggles to cope with the COVID-19 outbreak and associated challenges. InCred and Qbera haven’t disclosed the amount paid for the transaction, however, sources claim the deal may be valued at around $10-15 million.

The acquisition should help InCred expand its distribution channels by leveraging Qbera’s business partnerships. As first reported by the Economic Times, the deal should also help with co-originating loans and InCred may be able to grow its portfolio of consumer loans.

InCred is registered in India as a non-banking finance company (NBFC). It’s licensed by the Reserve Bank India (RBI) and maintains a loan-book size of approximately 2,100 Crore ($275.8 million). It’s one of the largest online lenders in the country, along with competitors Lendingkart and Capital Float.

InCred offers loans to individuals, SMEs, educational loans, and two-wheeler loans.

Qbera is a Fintech platform that mainly issues loans to salaried workers via several lending partnerships, which includes working cooperatively with the RBL Bank, IndusInd Bank and non-bank lender Fullerton.

Qbera previously secured $4.5 million in funding through two different rounds.

Bhupinder Singh, founder and CEO at InCred stated:

“We have built … risk management, technology and analytics capabilities across different asset classes like education, MSME and Consumer loans.

Aditya Kumar, founder and CEO at Qbera, remarked:

“Being a part of InCred provides Qbera critical cross-functional expertise… Having access to risk and technology capabilities will play a vital role in scaling the business, especially in a post-Covid world.”

Local sources claim that Qbera had been “in stress for quite some time and was out in the market for [a potential] acquisition since late last year.” They added that the company had been holding discussions with InCred since February of this year.

They also mentioned:

“It’s unlikely that InCred is spending anything significant for acquiring Qbera. It’s also highly unlikely that InCred would absorb Qbera’s workforce completely in the wake of the Covid-19 pandemic.”

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