Digital platform and loan marketplace Incred has acquired loan marketplace Qbera. Both companies have refused to disclose the financial details of the deal. While reports are rife that the deal is valued at $10-15 Mn but some sources claim that this could be a ‘stressed deal.’ Techpluto did not contact these sources, a popular news portal has cited them.
The news of Incred planning to acquire Qbera has been going on since February, with reports suggesting that Incred may merge the latter with its lending arm MValu Technology services.
According to Economic Times report, Qbera’s co-founders Adtiya Ghosh and Anuj Sachdev will become part of Incred to head the platform business and will also take the advisory role. The Mumbai headquartered company is also likely to absorb rest of the Qbera team.
The Scoop that this could be a stressed deal or an acquhire does carry some credibility due to prevailing circumstances. It was pretty much an open secret that Qbera was struggling to raise funds, with its last attempt to raise $15 Mn from investors reportedly hitting a dead end. Secondly, grave economic challenges in the wake of unprecedented economic crises have left capital starved startups with no option but opt for merger and consolidation.
It must also be noted that 2019 proved to be especially challenging for the Fintech sector, apparently raising question mark over the long term viability of small Fintech startups. Analysts claim that 2019 proved to be stressful because cost of credit increased significantly and securing quality borrowers became immensely difficult. Analysts further claim that 2020 may see more consolidation in the Fintech space due to pandemic effect.
About Incred and Qbera
Incred is a registered NBFC and boosts a loan book size of reportedly INR 2,100 crore. It offers loans in popular categories like personal loan, educational loan, two wheeler loan and SME Business loan.
Qbera, on other hand, is a Fintech platform that offers loans to salaried class. Its individual loan size typically ranges between Rs 1, 00,000 and 15, 00,000. E City Ventures – part of the Essel Group – is a majority stake holder in the company.