InCred, KKR India Financial Services conclude strategic merger to launch InCred Finance

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InCred and KKR on July 27 announced the conclusion of the strategic merger of InCred Financial Services Limited (InCred Finance) and KKR India Financial Services Limited (KIFS).

The combined business will operate under the InCred Finance brand name, with a $600 million balance sheet and a $300 million equity base. It will be managed by Bhupinder Singh, who founded the InCred Group in 2016.

Notably, InCred Finance is a strategic investment for KKR and is not a portfolio company in a KKR fund.

The closure of the transaction has helped create a “leading Indian non-banking finance company with the enhanced resources to better meet the needs of retail borrowers and micro, small and medium enterprises (MSMEs)”, the companies said in a release.

The release added that InCred Finance’s combination with KIFS adds to the equity base of InCred Finance and strengthens its ability to accelerate growth and gain market share in the retail and MSME lending space. The transaction also “reaffirms the strength and quality of the retail lending platform built by InCred Finance, which has a sharp focus on strong risk-management and collections practices and incorporates innovative technology solutions to enhance operational efficiencies”.

Commenting on the deal closure, Bhupinder Singh, Founder, and CEO, InCred Group, said: “InCred Finance’s business has emerged in great shape from the pandemic delivering top-notch risk performance. The strategic partnership with KKR significantly accelerates our ability to deliver our class-leading offerings at a large scale and to capitalise on the enormous credit opportunity in India.”

Gaurav Trehan, Partner, and CEO, KKR India, said: “This merger combines the strengths of InCred Finance and KIFS to create a market-leading lending platform with the enhanced resources and expertise to meet the diverse funding needs of Indian customers. KKR is pleased to remain involved with the business as a strategic partner, and we look forward to embarking on this next phase alongside Bhupinder and the broader InCred Finance team.”