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Tag: InCred Financial Services

  • Kamath Brothers Back InCred with INR 250 Crore Investment Power Move

    Nikhil and Nithin Kamath, co-founders of Zerodha, have paid INR 250 crore to purchase a minority interest in InCred Holdings Limited, which is the parent company of InCred Financial Services Ltd (IFSL).

    This is in advance of InCred’s anticipated first public offering later this year. IFSL is a tech-enabled NBFC that specialises in financing for SMEs, consumers, and educational institutions.

    Since its establishment in 2016, the business has served clients throughout India by utilising data science, risk analytics, and digital-first operations. According to investor and entrepreneur Nikhil Kamath, the credit ecosystem in India is rapidly evolving, becoming more formal, digitised, and easily accessible.

    He went on to say that it appears that InCred Group was aware of this fluctuating pulse rate. They have a solid staff, prioritise technology, and have a clear idea of the market’s future. Supporting them is an investment in that larger change—and the conviction that responsible lending can grow without sacrificing its core values.

    InCred’s IPO and Funding Till Now

    InCred is reportedly aiming for an IPO valuation between INR 15,000 crore and INR 22,500 crore. Through the IPO, it hopes to raise between INR 4,000 and 5,000 crore.

    In 2023, the business joined the unicorn club with a $1.04 billion valuation. Manipal Education and Medical Group, owned by Ranjan Pai, is one of its investors.

    An additional INR 1,000 crore was allotted to start-up funding by Rainmatter Capital, an investment arm supported by Zerodha, according to Nithin Kamath’s 2023 announcement.

    In order to assist financial startups, Rainmatter was founded in 2016. Nithin Kamath stated, “We have invested INR 400 crore in 80 start-ups so far.”

    Yet to Finalise Bank for the IPO

    Despite worldwide market turbulence that has affected fundraising plans and caused a media agency to speculate last week that InCred Financial’s IPO may be delayed, the company is still exploring selling its shares.

    Despite such market fluctuations, UBS Group AG is becoming more optimistic about Indian stocks, moving the market from underweight to neutral due to its defensive appeal.

    In an interview with a media outlet earlier this month, the chief investment officer of InCred Financial’s credit division, InCred Alternative Investments, stated that the company intends to raise 15 billion rupees through a new fund in order to meet the demand for private lending.

    Bhupinder Singh launched InCred Financial in 2016, and it specialises in financing for small businesses, retail customers, and educational institutions. In 2022, the company announced a cooperation with KKR India Financial Services Ltd.

  • By Diwali Next Year, InCred Financial Services Plans to Launch an INR 5,000 crore IPO

    According to reports, fintech unicorn InCred Financial Services has started the process of going public and intends to generate between INR 4,000 Cr (about $470 million) and INR 5,000 Cr (roughly $590 million) through an initial public offering (IPO) in the latter part of next year. According to a source cited by various media reports, the fintech giant InCred Finance is considering a valuation between INR 15,000 Cr (about $1.78 billion) and INR 22,500 Cr (around $2.6 billion). By January 2025, the business intends to select merchant bankers to lead its public offering. According to reports, “the company wants to launch a Diwali 2025 initial public offering and aims to appoint four banks by January.” An offer for sale (OFS) component is also anticipated to be included in the IPO, allowing investors to sell their firm shares and record returns. Notably, in September, Bhupinder Singh, the founder and group CEO of InCred, stated that the fintech startup would only list on the stock exchanges if KKR, a prominent global private equity (PE) firm that owns 13.4% of the company, agreed to sell its position during the initial public offering (IPO).

    Entering the Unicorn Club

    A year after InCred announced that its lending division had joined the exclusive unicorn club after raising $60 million in its Series D round, which was led by Ranjan Pai of Manipal Education and Medical Group, the company decided to list on stock exchanges.  As a fierce funding winter dried up money across the startup ecosystem, InCred became one of only two firms (the other being Zepto) to become unicorns in 2023, with a $1.04 billion fundraising campaign.

    InCred’s Business Operations

    Bhupinder Singh founded InCred Group in 2016, and through its three distinct verticals, it operates in the banking, financial services, and insurance (BFSI) industry. InCred Finance and InCred Capital are the loan and wealth and asset management verticals, respectively, while InCred Money deals in retail bonds and alternative investments. In addition, InCred has investors including Moore Capital, Elevar Equity, Investcorp, OAKS, and Abu Dhabi Investment Authority (ADIA). At the conclusion of the fiscal year 2023–24 (FY24), InCred Finance reportedly had assets under management (AUM) of INR 9,039 Cr, up 52% year over year (YoY). In FY24, InCred’s consolidated net profit increased 162% to INR 316.3 Cr from INR 120.9 Cr the year before. Operating revenue increased from INR 864.6 Cr in FY23 to INR 1,270 Cr, a 47% increase.

    With the IPO, InCred reaches a major milestone and establishes itself as a prominent player in the fintech and NBFC sectors in India. The company hopes to attract market attention for its eagerly awaited public debut in 2025 with its robust financial performance, diversified business plan, and support from international investors.

    CCI Approves KKR’s Investment in Rebel Foods
    The CCI has approved US-based KKR’s proposal to acquire a share in Rebel Foods, paving the way for a significant investment in the food tech company.
    StartupTalkyNitin Konde