Nithin and Nikhil Kamath, founders of India’s largest brokerage Zerodha, have invested ₹250 crore to acquire a minority stake in InCred Holdings Ltd, the parent of InCred Financial Services Ltd (IFSL). This strategic bet comes just ahead of InCred’s planned ₹4,000 crore IPO, likely in late 2025.
About InCred Holdings
- Founded: 2016 by Bhupinder Singh
- Core Business: Lending to retail consumers, MSMEs, and education segments
- Model: Tech-driven NBFC using data science, proprietary risk analytics, and digital-first operations
- Classification: Categorized by the RBI as an “upper layer” NBFC, mandating a public listing by September 2025 .
Why the ₹250 Cr Investment Matters
- Pre-IPO Visibility: Backing by the Kamath brothers boosts investor confidence and media visibility ahead of listing.
- Credit Market Confidence: It signals trust in India’s digitizing formal lending infrastructure.
- Fintech Synergy: Rainmatter (Zerodha’s startup fund) aligns closely with InCred’s data-first approach to financial services.
InCred’s IPO Plans
- Target Size:
₹4,000 crore ($470 million) - Timeline: Mandatory listing deadline by Sept 2025, filing expected within FY25
- Advisors: Reportedly in talks with global investment banks and KKR-backed partners for pre-IPO strategy and syndication.
Strategic Context
| Category | Detail |
|---|---|
| Investor | Nithin & Nikhil Kamath (Zerodha) |
| Amount | ₹250 crore (~$30 million) |
| Target Company | InCred Holdings Ltd |
| IPO Goal | ₹4,000 crore |
| Regulatory Classification | RBI “Upper Layer” NBFC |
Why It’s a Big Deal
- India’s formal credit market is rapidly expanding as fintechs digitize personal loans, SME finance, and education lending.
- With top-tier backers and proprietary tech, InCred is well positioned to become a dominant NBFC player in public markets.
