Kamath brothers invest Rs 250 crore in IPO-bound financial services firm InCred

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Zerodha founders Nikhil and Nithin Kamath have acquired a minority stake in InCred Holdings Limited, the parent company of IPO-bound lending firm InCred Financial.

The investment was made through a Rs 250-crore purchase of shares, the firm said in a statement on June 23.

“India’s credit ecosystem is changing fast—more formal, more digital, and more accessible,” said Nikhil Kamath. “InCred Group seems to get that. They’ve built a strong team, a technology-first approach, and a clear view of where the market is headed. Backing them is a bet on that broader shift—and the belief that responsible lending can scale without losing sight of fundamentals.”

The development comes a week after InCred Money, the retail wealthtech arm of the Group, acquired South Asian Stocks Limited (SASL), which operates the discount broking platform Stocko. The deal marked InCred's entry into the retail broking space.

Once the deal is cleared, the platform will be rebranded as InCred Stocko and integrated into the InCred Money digital investment suite, which currently offers fixed deposits and alternative investment products, the firm said in a statement, without sharing the financial details of the deal.

InCred Group, founded in 2016 by Bhupinder Singh, operates across three verticals: InCred Finance (NBFC lending), InCred Capital (institutional, asset, and wealth management) and InCred Money (retail investment distribution). The group’s revenue from operations grew by 48 percent to Rs 1,267 crore while profit after tax (PAT) stood at Rs 316 crore.

In 2022, InCred Finance merged with KKR India Financial Services, creating a joint entity under the InCred Finance brand.

The NBFC arm, which achieved its coveted unicorn status (companies valued at over $1 billion) in 2023 after raising $60 million from investors Ranjan Pai of MEMG, RP Group chairman Ravi Pillai, and Deutsche Bank’s Ram Nayak, completed the acquisition of TruCap Finance’s gold loan business through a slump sale to enter the new market and strengthen secured lending portfolio.

InCred has a loan book exceeding Rs 10,000 crore.

The company plans to hit the public market to raise between Rs 4,000 crore and Rs 5,000 crore at an expected valuation of Rs 15,000 crore to Rs 22,500 crore, reports have said.