Kamath Brothers Invest INR 250 Cr in IPO-Bound InCred, Betting on Financial Services Growth
Zerodha founders acquire minority stake as InCred gears up for public listing and expands its BFSI footprint.
Kamath Brothers Back InCred Ahead of IPO
Nikhil and Nithin Kamath, cofounders of Zerodha, have acquired a minority stake in InCred Holdings Limited, the parent entity of InCred Financial Services, by purchasing shares worth INR 250 Cr.
- The investment comes as InCred prepares for its much-anticipated IPO, expected by the end of 2025, through which it aims to raise INR 4,000 Cr – INR 5,000 Cr.
- Commenting on the deal, Nikhil Kamath stated: “Backing them is a bet on that broader shift—and the belief that responsible lending can scale without losing sight of fundamentals.”
InCred’s Growing Financial Ecosystem
Founded in 2016 by Bhupinder Singh, InCred operates across the BFSI sector through three key verticals:
- InCred Finance: Lending arm, which became a unicorn in December 2023.
- InCred Capital: Wealth and asset management division.
- InCred Money: Digital investment platform for B2C and B2B2C users.
In 2022, InCred Finance merged with KKR India Financial Services, strengthening its lending operations.
The company recently entered the retail broking segment with the proposed acquisition of Stocko, which will be rebranded as InCred Money.
Financial Performance and Fundraising
In FY25, InCred delivered strong growth:
- Net profit rose 18% to INR 374 Cr, up from INR 316.4 Cr in FY24.
- Operating revenue jumped 47% to INR 1,871.9 Cr from INR 1,269.9 Cr.
- Its alternative investment arm, InCred Capital, closed its maiden private equity fund, raising INR 575 Cr.
Kamath Brothers’ Growing Investment Portfolio
The InCred investment reflects the Kamath brothers’ increasing footprint in India’s startup ecosystem:
- Recently participated in Biopeak’s $3.5 Mn funding round.
- Invested in SuperYou, Bollywood actor Ranveer Singh’s protein supplement brand, via Rainmatter Capital.
- Nikhil Kamath also launched the WTFund, providing non-dilutive grants to 40 startups led by entrepreneurs under 25.
Meanwhile, Zerodha itself continues to thrive:
- The company posted 37.16% revenue growth, reaching INR 9,372.1 Cr in FY24, up from INR 6,832.8 Cr in FY23.
