Fintech Unicorn InCred’s Profit Quadruples To INR 121 Cr In FY23

Fintech unicorn InCred Financial Services’ net profit quadrupled to INR 120.9 Cr in the financial year 2022-23 (FY23) from INR 30.8 Cr reported in the previous fiscal year, helped by a sharp rise in interest income and fees and commission income.

InCred reported an over 77% jump in its operating revenue to INR 864.6 Cr in the reported fiscal year from INR 488 Cr in FY22.

Founded in 2016 by Bhupinder Singh, InCred Group operates in the BFSI sector through three separate entities – lending vertical InCred Finance, wealth and asset management vertical InCred Capital, and retail bonds and alternative investments platform InCred Money. 

In January 2023, the company acquired wealthtech startup Orowealth for the launch of its retail-focused wealthtech platform ‘InCred Money’. 

InCred Financial Services divides its operating income in multiple heads – interest income, dividend income, fees and commission income, net gain on derecognition of financial instruments under the amortised cost category, among others.

While interest income contributed the highest amount to revenue at INR 822.8 Cr, jumping almost 74% year-on-year (YoY), fees and commission income doubled YoY to INR 20.9 Cr in FY23.

Meanwhile, the startup earned a dividend income of INR 25 Lakh this year. This number stood at nil in FY22.

Including other income such as marketing fees and business support charges, the startup’s total revenue grew to INR 877.4 Cr in FY23 from INR 524.3 Cr in the previous year.

It is pertinent to note that InCred turned a unicorn in December 2023 after raising $60 Mn (INR 500 Cr) in its Series D funding round led by Manipal Education and Medical Group’s Ranjan Pai. 

Zooming Into Expenses

In line with its growing business, total expenses increased 32.5% to INR 633.5 Cr in FY23 from INR 478.2 Cr in the previous year, with finance cost being the biggest contributor to the expense.

Finance Costs: The startup’s spending in this bucket jumped 62.1% to INR 355.8 Cr during the year under review from INR 219.5 Cr in FY22.

Employee Cost: InCred’s expenditure towards employee benefit expenses surged 37.7% to INR 191.7 Cr in FY23 from INR 139.2 Cr in the previous year.

In that, the startup spent INR 142.8 Cr towards salaries and wages. Its ESOP expenses increased over 53% YoY to INR 37.6 in FY23.

IT Expenses: InCred’s spending in this bucket shot up about 29% YoY to INR 17.5 Cr in FY23.

Depreciation, Amortisation and Impairment: The startup spent INR 12.8 Cr in the bucket during the year under review as against INR 12.3 Cr in FY22.

InCred has raised over $200 Mn so far across multiple funding rounds. In October last year, InCred Asset Management, the asset management arm of InCred, closed its maiden credit fund, InCred Credit Opportunities Fund-I, at INR 660 Cr.