InCred Holdings IPO Plans

InCred Holdings Limited, the parent entity of InCred Financial Services, has initiated steps towards an IPO by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) using the confidential route, as per informed sources. This move aims to secure between Rs 4,000–5,500 crore via a mix of fresh issues and an offer for sale, representing a significant advancement towards its entry into public markets.

IPO Proceeds and Utilisation

The funds raised from the IPO are intended to strengthen the capital structure of its lending division and support expansion in various business areas. The recently introduced confidential filing option by SEBI enables companies to privately submit draft IPO documents, allowing them to adjust details or postpone listing based on prevailing market conditions.

Board Resolution and IPO Structure

In September, InCred’s board confirmed a resolution approving a fresh issue of Rs 1,500 crore, a detail exclusively covered by Startup Superb. The total size of the IPO will consist of the Rs 1,500 crore fresh issue, while the remainder will be derived from an offer for sale by current shareholders.

About InCred

Founded by Bhupinder Singh, InCred operates as a tech-oriented non-banking financial company (NBFC), concentrating on consumer, small and medium enterprises (SME), and educational lending segments. The company asserts its capability to utilise proprietary risk analytics, data science, and a digital-first approach to cater to retail and MSME borrowers across India.

Entities under InCred Group

The InCred Group encompasses three branches: InCred Finance, InCred Capital, and InCred Money. InCred Finance has successfully raised over $370 million to date, which includes $60 million from its Series D funding round, propelling it into the unicorn category. Simultaneously, InCred Capital, focused on wealth and asset advisory, mergers and acquisitions, equity research, and brokerage services, has garnered approximately $50 million from notable family offices.

Financial Performance

On the financial front, InCred Finance exhibited a 47% year-on-year increase in revenue, rising to Rs 1,872 crore in FY25 compared to Rs 1,270 crore in FY24, while its profit saw an 18% growth, reaching Rs 374 crore during the identical period.