InCred Finance's FY25 Profit Zooms 18% To INR 374 Cr

SUMMARY

Operating revenue zoomed 47% to INR 1,871.9 Cr during the year under review from INR 1,269.9 Cr in FY24

Total expenses stood at INR 1,381.1 Cr, marking a 59% increase from the INR 871.4 Cr the company spent in the previous fiscal

InCred Finance is an NBFC which offers customers a range of financial products, including personal loans, education loans, among others

Lending tech unicorn InCred Financial Services, a part of the InCred Group, reported a 18% rise in its consolidated net profit to INR 374 Cr in FY25 from INR 316.4 Cr in the previous year.

Operating revenue zoomed 47% to INR 1,871.9 Cr during the year under review from INR 1,269.9 Cr in FY24. Of this, interest income accounted for INR 1,691.6 Cr. INR 137.2 Cr came from fees and commission.

Including an other income component of INR 10.6 Cr, InCred’s total income for the fiscal stood at INR 1,882.6 Cr.

Total expenses stood at INR 1,381.1 Cr, marking a 59% increase from the INR 871.4 Cr it spent in the previous fiscal.

Breaking Down InCred Finance’s Expenses

Finance Costs: This continued to be the startup’s biggest expense, with its spending under this bucket jumping 38% to INR 627.6 Cr during the year under review from INR 454.8 Cr in FY24.

Impairment On Financial Instruments: This expense stood at INR 187.8 Cr for FY25 as against a gain of INR 19.5 Cr in the previous fiscal.

Employee Cost: InCred spent INR 336.8 Cr on its employees, marking a 29% increase from INR 261.4 Cr it spent on its workforce in FY24.

Other Expenses: The spending under the head surged 78% to INR 210.7 Cr from INR 118.3 Cr in FY24.

Tracing The NBFC’s Journey

InCred Financial Services (or Incred Finance) is one of the three verticals of the InCred Group. Founded in 2016 by ex-Deutsche Bank executive 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.

InCred Finance is an NBFC which offers customers a range of financial products, including personal loans, education loans, SME business loans and merchant loans. In July 2022, InCred Financial Services merged with KKR India Financial Services to create a “leading Indian non-banking finance company with the enhanced resources to be able to meet the needs of retail borrowers and micro, small and medium enterprises”.

Its assets under management (AUM) stood at INR 11,476 Cr at the end of December 2024, up 27% from INR 9,039 Cr AUM at the end of FY24.

Earlier this year, Inc42 reported that the startup secured a debt of around $30 Mn from a clutch of investors, led by wealth and asset management firm Neo Group, in multiple tranches since January.

In February, InCred Finance announced the acquisition of TruCap Finance’s gold loan division for INR 330 Cr.

Last week, it was reported that InCred Finance was in discussions with investment bankers IIFL Securities, Kotak Mahindra and Nomura Holdings to helm its IPO, which could potentially value it at $1.8 Bn.

The IPO will see it raise INR 4,000 Cr (about $470 Mn) to INR 5,000 Cr (about $590 Mn) by the end of this year. The IPO is also expected to comprise an offer-for-sale (OFS) component.

Earlier, Singh had said that the unicorn will go for a listing only after KKR, which owns 13.4% stake in the company, agrees to sell its holding during the IPO.

With the IPO, InCred will Finance likely see its valuation spike about 80% from its last known unicorn valuation of December 2023. The company turned unicorn back when it raised $60 Mn (INR 500 Cr) in its Series D funding round, led by Manipal Education and Medical Group’s Ranjan Pai.