We will definitely be listed, just a question of when: InCred’s Prithvi Chandrashekhar

KKR-backed fintech startup InCred is headed for an initial public offering (IPO) in the near future, and is currently betting big on its secured loans business to drive growth, said Prithvi Chandrashekhar, CEO of Consumer Finance at the company.

“We have been talking about accessing the public markets for several months now. It is just a question of when. There are many uncertainties on the way, including filing with Sebi and going through due process. But we will definitely be listed. As a now fairly big NBFC in a capital hungry business, that is the natural path (for us),” Chandrashekhar said speaking at Moneycontrol's India Fintech Conclave (IFC) 2024 in Mumbai on December 18.

This comes shortly after media reports suggested that the company plans to raise between Rs 4,000 and 5,000 crore in an IPO late next year, with an expected valuation of Rs 15,000 to 22,500 crore.

While speaking about navigating the current regulatory landscape, Chandrashekhar said that the key is to stay closely engaged with the regulator.

“We try to engage with the regulator as closely as possible to understand what their intent is, and stay within that intent. What we want for the industry, and what the regulator wants, is the same. We want stability and clarity, and want to be able to attract investors that are confident that the goalposts are not going to change,” he said.

Chandrashekhar added that the company is navigating a slowdown of disbursals in consumption loans, be it personal loans, credit cards or consumer durables, which has been partly prompted by the RBI and its regulatory measures.

“It is less about specific regulations. It’s more about the rate hike, the slowdown in total lending, and dealing with the consequences of that. But this is a temporary slowdown,” he said.

InCred currently operates eight independent verticals, including its lending business InCred Finance, wealth and asset management platform InCred Capital, and digital investment distribution platform InCred Money.

Talking about the company’s next phase of growth, Chandrashekhar said that most of the company’s investments are currently going towards its secured loans business, with no plans to get into newer verticals in the near future.

“The fastest growth will be in our secured business loan vertical...A lot of the explosions in terms of credit access have been in the unsecured space. In business loans, we have seen a lot of growth in consumption finance. That is pretty much waiting to happen in both secured and MSME. And we are doubling down on that segment,” he said.

InCred achieved its coveted unicorn status – companies valued at over $1 billion – last year, after it raised $60 million in series D funding from investors Ranjan Pai of MEMG, RP Group Chairman Ravi Pillai, and Deutsche Bank’s Ram Nayak.