New Delhi, June 23 -- Brothers Nikhil Kamath and Nithin Kamath, the co-founders of discount broker Zerodha, have invested Rs 250 crore ($28.8 million) in InCred Holdings Ltd, the holding company of non-banking lender InCred Financial Services Ltd.
"India's credit ecosystem is changing fast-more formal, more digital, and more accessible," Nikhil Kamath said in a statement on Monday. "InCred Group seems to get that. They've built a strong team, a technology-first approach, and a clear view of where the market is headed. Backing them is a bet on that broader shift-and the belief that responsible lending can scale without losing sight of fundamentals."
The development comes as InCred Financial Services, which operates as InCred Finance, prepares for initial public offering. InCred Finance, which entered the unicorn club after raising Rs 500 crore in its Series D round of funding in 2023, is reportedly preparing for a Rs 4,000-crore IPO in the next 12 months. It would largely be an offer for sale, depending on valuation and investor interest.
The Kamath brothers' investment is likely a secondary transaction involving a sale of shares by existing shareholders. InCred did not respond to VCCircle's queries till the time of writing this article.
VCCircle had reported previously that the company didn't need capital until March 2026 or beyond and that the company did not intend on diluting shareholder returns.
InCred Finance was formed by the merger of KKR India Financial Services Ltd and the erstwhile InCred Financial in 2022. KKR, along with Teacher Retirement System of Texas and Abu Dhabi Investment Authority (ADIA), together hold a little more than a third of the merged entity.
The non-banking financial services company focuses on consumer, education, and SME lending. It boasts a loan book of over Rs 12,384 crore.
Earlier this year, it made an inorganic play in the fast-growing gold loan segment to diversify and quickly expand its portfolio, acquiring Mumbai-listed TruCap Finance Ltd's gold loan book for Rs 330 crore. In February, it acquired Dubai-based Arrow Capital to expand its Middle Easter operations.
VCCircle previously reported the company was targeting Rs 20,000 crore of AUM in two to two-and-a-half years.
Led by Bhupinder Singh, InCred Group also has businesses spanning wealth and asset management. It also operates investment banking arm InCred Capital, and retail bonds and alternative investments arm InCred Money.
Published by HT Digital Content Services with permission from VC Circle.