Kamath Brothers Pick Up INR 250 Cr Minority Stake In InCred

SUMMARY

Zerodha founders — Nikhil and Nithin Kamath have acquired minority stake in InCred by purchasing shares worth INR 250 Cr

Founded in 2016 by Bhupinder Singh, InCred Group operates in the BFSI sector through three separate entities

Its lending arm became a unicorn in December 2023

Zerodha cofounders Nikhil and Nithin Kamath have acquired a minority stake in InCred Holdings Limited, the parent of InCred Financial Services Ltd, by purchasing shares worth INR 250 Cr ahead of the company’s anticipated initial public offering (IPO).

“Backing them (InCred) is a bet on that broader shift—and the belief that responsible lending can scale without losing sight of fundamentals,” said Nikhil Kamath.

The investment comes amid InCred’s plan to build a financial ecosystem that includes lending, asset and wealth management, capital markets and retail investing.

Founded in 2016 by Bhupinder Singh, InCred Group operates in the BFSI sector through three separate entities – lending arm InCred Finance, wealth and asset management vertical InCred Capital, and B2C and B2B2C digital investment distribution platform InCred Money. In 2022, InCred Finance merged with KKR India Financial Services.

InCred became a unicorn in December 2023.

The company is planning to raise INR 4,000 Cr – INR 5,000 Cr via its public listing, which is anticipated to hit the bourses by the end of 2025.

It recently entered into the retail broking segment with the proposed acquisition of Stocko in an undisclosed financial deal. After the acquisition, Stocko will be rebranded as InCred Money.

On the financial front, InCred posted an 18% jump in its consolidated net profit to INR 374 Cr in FY25 from INR 316.4 Cr in the previous fiscal year. Also, its operating revenue surged 47% to INR 1,871.9 Cr from INR 1,269.9 Cr in FY24.

The company’s alternative investment arm InCred Capital recently announced the final close of its maiden private equity fund, InCred Growth Partners Fund-I (IGPF-I), with commitments exceeding INR 575 Cr.

Kamath Brothers’ Portfolio

This investment comes at a time when both, Nikhil and Nithin Kamath, are actively investing in the Indian startup ecosystem.

Earlier this month, both the brothers participated in Biopeak’s $3.5 Mn funding round.

Bollywood actor Ranveer Singh’s protein supplements brand SuperYou also raised Series A funding from Nikhil and Nithin via Zerodha’s VC arm Rainmatter Capital.

Last year, Nikhil unveiled his grant initiative ‘WTFund’ for young entrepreneurs below the age of 25 to back 40 startups with a non-dilutive grant of INR 20 Lakh each.

Zerodha’s consolidated revenue jumped 37.16% to INR 9,372.1 Cr in the financial year ended March 2024 (FY24) from INR 6,832.8 Cr in the previous fiscal year.