InCred Holdings Limited is a diversified financial services group that offers retail lending, education loans, personal loans, digital loans, and wealth management. The company was incorporated in 2011, with headquarters in Mumbai, Maharashtra. It is primarily operated through its NBFC arm, InCred Financial Services and is backed by investors such as KKR and Investcorp. Key verticals include Consumer Lending, MSME Loans, Education Finance, and Wealth Tech. Its subsidiaries are InCred Financial Services (NBFC), InCred Capital, and InCred Equities. Bhupinder Singh, ex-Deutsche Bank Co-Head of Investment Banking Asia, founded the company.
**Investment Rationale:** The investment rationale highlights a diversified lending model with exposure to retail, MSME, and student loan segments. The company also possesses a strong promoter pedigree, a high-quality investor base, and digital-first operations using tech-driven underwriting and servicing platforms. InCred is actively preparing for a potential public listing in FY26.
**Financials:**
* Interest income: ₹488 Cr (FY22), ₹866 Cr (FY23), ₹1194 Cr (FY24 - estimate)
* PAT: ₹31 Cr (FY22), ₹109 Cr (FY23), ₹309 Cr (FY24 - estimate)
* Gross NPA: 2.8 (FY22), 2.1 (FY23), 2.1 (FY24 - estimate)
* Net NPA: 2.8 (FY22), 2.1 (FY23), 2.1 (FY24 - estimate)
**Valuation Metrics:** The last deal price was ₹162/share as of May 5, 2025, giving it an implied market cap of ₹10,397 Cr. The estimated P/E Ratio (FY24) is ~33.68x, and the P/B Ratio is ~3.06x. The Book Value is 52.92.
**Shareholding Pattern:** The shareholding pattern shows that 44.35% is held by "Others," 29.49% by KKR India Financial Investments Pte. Ltd, 17.06% by B Singh Holdings, and 9.10% by MNI Ventures.
**Key Risks:** Potential risks include credit quality sensitivity due to exposure to unsecured loans, competition from other fintech-NBFC hybrids and traditional banks, and regulatory risks related to RBI norms on NBFCs and digital lending.
**IPO Timeline & Exit Options:** The expected IPO is in FY25-FY26. Other exit routes are unlisted share transfers and pre-IPO deals. The company raised ₹500+ Cr in late 2023 at an estimated $1 Billion valuation.
**UnlistedZone View:** InCred Holdings is seen as a major player in India's fintech ecosystem with potential for a compelling pre-IPO opportunity. UnlistedZone gives the company a rating of "Accumulate" with a 3-4 year horizon and has a target valuation post-IPO of ₹8,000-10,000 Cr.
