InCred Financial Eyes INR 5,000 Cr IPO By Diwali Next Year

Fintech unicorn InCred Financial Services has set its public listing plans into motion and reportedly plans to raise INR 4,000 Cr (about $470 Mn) to INR 5,000 Cr (about $590 Mn) via its initial public offering (IPO) late next year. 

Citing a source, Livemint reported that the fintech major (InCred Finance) is eyeing a valuation of INR 15,000 Cr (about $1.78 Bn) to INR 22,500 Cr (about $2.6 Bn). The company plans to finalise merchant bankers to helm its public issue by January 2025. 

“The company aims to appoint four banks by January and wants to launch a Diwali 2025 initial public offering,” the source was quoted as saying. 

The IPO is also expected to comprise an offer for sale (OFS) component, enabling its investors to offload stakes in the company and book returns. 

Notably, InCred’s founder and group CEO Bhupinder Singh, in September, said that the fintech unicorn would list on the bourses only after global private equity (PE) major KKR, which owns 13.4% stake in the company, agrees to sell its holding during the IPO. 

The move to list on the stock exchanges comes a year after InCred said that its lending arm entered the coveted unicorn club after raising $60 Mn in its Series D round led by Manipal Education and Medical Group’s Ranjan Pai. 

The fundraise pegged InCred at $1.04 Bn and became one of the only two startups (other being Zepto) that turned unicorn in 2023 as a raging funding winter dried up capital across the startup ecosystem. 

Founded in 2016 by Singh, InCred Group operates in the banking, financial services, and insurance (BFSI) sector via its three separate verticals. While InCred Money deals in retail bonds and alternative investments, InCred Finance and InCred Capital are the lending and the wealth and asset management verticals, respectively. 

InCred also counts names such as Abu Dhabi Investment Authority (ADIA), OAKS, Investcorp, Moore Capital, Elevar Equity, among others, as its investors. InCred Finance reportedly had assets under management (AUM) worth INR 9,039 Cr at the end of the financial year 2023-24 (FY24), up 52% year-on-year (YoY).

InCred saw its consolidated net profit soar 162% to INR 316.3 Cr in FY24 from INR 120.9 Cr in the previous year. Operating revenue jumped 47% to INR 1,270 Cr from INR 864.6 Cr in FY23.

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