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.