From Underserved to IPO Champ: How InCred Holdings Ltd is Writing Its Next Chapter with a ₹3,000-4,000 Crore IPO.
InCred Holdings Ltd. has confidentially filed preliminary papers with the Securities and Exchange Board of India (SEBI) for a proposed ₹3,000-4,000 crore IPO. The financial services group, which achieved unicorn status in 2023, is aiming to list on the main board of Indian stock exchanges.
InIndia’s transforming financial-services landscape, one name stands out for bringing together technology, inclusion and growth — InCred. The holding company, InCred Holdings Ltd, the parent of the NBFC and financial-services group operative through its verticals across lending, wealth & asset-management, has just taken a decisive step: the filing of a draft red-herring prospectus (DRHP) via the confidential pre-filing route with the regulator Securities and Exchange Board of India (SEBI), signalling an imminent initial public offering (IPO) of approximately ₹3,000-4,000 crore.
This article dives into the success story of InCred — how it built momentum, carved its niche in consumer, education and MSME lending, raised capital from marquee investors, and is now gearing up for its IPO. We also explore what the IPO means, why it matters, and the implications for investors, the company and the broader financial-services ecosystem.
The InCred success story: From start-up NBFC to IPO candidate
Founding & vision
InCred’s journey is rooted in the vision of its founder Bhupinder Singh — a former global banker who identified the large unmet credit demand in India’s under-served segments. Early-on, he observed that many individuals and small businesses were excluded from mainstream banking, not because they lacked repayment ability but because they lacked conventional credit histories or were served by outdated underwriting models.
Thus, InCred was conceived as a tech-driven NBFC (non-banking financial company) with a hybrid model: combining data science, alternative underwriting, digital processes and boots-on-ground lending operations. This blend of fintech mindset + responsible credit laid the foundation for its later scale.
Focused growth across segments
Rather than chasing every lending opportunity, InCred strategically focused on three core verticals:
Consumer lending (personal loans)
Education finance (student loans, overseas study support)
MSME & merchant loans (small business lending)
This allowed for specialization, customized underwriting models, and better risk management.
From the data: for FY 24, InCred’s operating revenue rose by about 48 % to ₹1,267 cr, and its profit surged 160 % to ₹316 cr. The AUM (assets under management) expanded rapidly from around ₹9,039 cr in March 2024.
Capital raising & investor confidence
InCred’s model gained credibility fast. Notable milestones include:
The investment of ₹250 crore by the founders of Zerodha Technologies (Nithin & Nikhil Kamath) into InCred Holdings signalling investor confidence ahead of IPO.
Debt funding of ~₹400 crore from institutions like Morgan Stanley and Nippon Life India AMC, aligning with the IPO prep storyline.
These external endorsements reflect that InCred has been able to combine growth with profitability in contrast to many fintech peers burning cash.
Key metrics & competitive strengths
Some of InCred’s standout metrics and strengths:
AUM in growth trajectory, reflecting the scale of responsibilities.
Portfolio diversification across consumer, education and MSME segments.
Strong risk metrics: e.g., net NPA (non-performing assets) as low as ~0.7 %.
A tech-data-underwriting DNA which enables reach into underserved borrowers, differentiated from legacy banks. The “inclusion + risk-discount model” has become a competitive edge.
In sum, InCred’s success story is one of identifying a large underserved market, deploying digital and analytic tools + human-understanding, raising capital, scaling responsibly, and delivering results. All of which set the stage for the IPO.
The upcoming IPO: What we know so far
Filing & proposed size
The big news: InCred Holdings has confidentially filed a DRHP with SEBI via the pre-filing/“confidential” route for its proposed IPO.
Currently, reports indicate the IPO size is expected around ₹3,000-4,000 crore (some sources say up to ₹4,000-5,000 crore) via a mix of fresh issue + offer for sale (OFS) by existing shareholders.
InCred’s public statement said the pre-filed DRHP does not necessarily mean the IPO will happen market conditions will dictate timing.
What the pre-filing route means:
The confidential pre-filing route allows companies to submit their DRHP to SEBI without immediately disclosing full details publicly giving flexibility to evaluate market conditions. For InCred, this means the IPO is in preparation rather than an immediate launch.
Use of proceeds & strategic intent:
While full details are not publicly disclosed yet, typical use of fresh issue proceeds in a lending-platform IPO include: strengthening the capital base, supporting asset growth (AUM expansion), building product verticals (e.g., education loans, merchant loans), regulatory & compliance strengthening, and possibly inorganic growth (acquisitions). InCred has already demonstrated acquisitions and growth initiatives (e.g., gold-loan book purchase) ahead of its IPO.
Why the IPO matters:
The IPO will offer an exit / liquidity path for early investors and shareholders, and broaden the ownership base.
Public listing brings greater transparency, governance rigour, and brand recognition for InCred useful in lending businesses where trust matters.
For the Indian credit ecosystem, InCred’s IPO signals that fintech-led, tech-driven NBFCs can scale to public-market readiness which may pave the way for more such listings.
For investors, a well-executed IPO of a profitable, scalable lending platform like InCred presents an opportunity to participate in India’s credit growth story.
SEO-rich insights: Keywords to note
Throughout this article we’ve incorporated key SEO phrases such as:
InCred IPO
InCred Holdings Ltd IPO size
InCred success story
NBFC IPO India
InCred financial services India
Tech-enabled lending platform
Indian MSME lending growth
Consumer & education loans India
Pre-filing route IPO India
Responsible lending fintech India
These keywords reflect the core themes: fintech-enabled lending, Indian credit market growth, IPO readiness, and InCred’s story.
What to watch: Risks & growth triggers:
Growth triggers
Further expansion of AUM across the consumer, education and MSME segments.
Continued maintenance of asset-quality metrics (low NPAs) which will build investor confidence.
Successful scaling of wealth & asset-management verticals (InCred Capital, InCred Money) to diversify revenue streams.
Ability to leverage technology and alternative data in underwriting to remain differentiated
Timing of the IPO: favourable market conditions, peer‐valuations, investor appetite for NBFCs/fintech.
Risks
Lending inherently carries credit risk; a macro-shock, regulatory tightening, or spike in defaults could impact InCred.
Competition: Many fintechs and banks are targeting the same underserved segments, so differentiation must be sustained.
Interest rate risk & funding risk: NBFCs depend on efficient access to capital; any disruption could impact growth.
IPO market risk: If markets are volatile or sentiment weak, the IPO valuation may suffer or be postponed.
InCred Holdings Ltd has demonstrated a compelling success trajectory: identifying a large underserved credit market in India, building a tech-driven lending platform, delivering profitability and scale, raising capital from prominent investors and now preparing to go public with an IPO of ₹3,000-4,000 crore.
For the Indian lending ecosystem, InCred’s IPO could be a landmark — shining a light on the path for new-age NBFCs and fintech-led credit platforms to cross into the public markets.
For investors and market watchers, the key will be: the growth story post-IPO, asset-quality discipline, execution in multiple verticals, and how InCred manages to sustain its competitive edge.
As InCred takes this next step from growth company to listed company, the question is whether it can fully realise its vision of accessible, technology-enabled credit while delivering returns for all stakeholders. If it does its success story will only be just beginning.
Team: Creditmoneyfinance.com