InCred Holdings, a prominent financial services group backed by global investment firm KKR, has officially filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).
The public offering is structured to include a fresh issue of equity shares amounting to up to Rs 1,250 crore. Additionally, the IPO will feature an offer for sale (OFS) of up to 99,020,833 equity shares from existing shareholders, including KKR India Financial Investments, MNI Ventures, MEMG Family Office LLP, and V’Ocean Investments.
IPO Proceeds and Strategic Objectives
The net proceeds generated from the fresh issue component of the IPO are primarily earmarked for strategic investments in InCred Financial Services (InCred Finance), the group's material subsidiary and main revenue driver. These funds are intended to augment InCred Finance's capital base, strengthen its Tier-I capital, support its onward lending activities, and enhance its overall capital adequacy ratio. The issue is being managed by a consortium of bankers including IIFL Capital Services, InCred Capital Wealth Portfolio Managers, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and UBS Securities India.
Robust Financial Performance and Growth
InCred Holdings has demonstrated strong financial growth, with its Assets Under Management (AUM) rising to Rs 14,447.86 crore for the nine months ending December 31, 2025. During the same period, the company reported a Profit After Tax (PAT) of Rs 290.14 crore, with disbursements totaling Rs 6,683.28 crore. The portfolio yields stood at 18.39 percent, while the average cost of total borrowings was 10.05 percent. Between fiscal years 2023 and 2025, InCred's AUM and PAT experienced impressive compounded annual growth rates (CAGR) of 44.04 percent and 84.97 percent, respectively.
Diversified Lending and AI-Driven Approach
The company's lending book is diversified across five key verticals. As of December 31, 2025, personal loans constituted the largest share at 55.56 percent of AUM (Rs 8,027.12 crore), followed by student loans at 22.15 percent (Rs 3,200.51 crore). Secured business loans, MSME loans, and loans to financial institutions accounted for 8.74 percent, 7.38 percent, and 5.55 percent of AUM, respectively.
InCred Finance emphasizes a risk-first lending model, powered by an AI-enabled, in-house proprietary technology platform. This approach has contributed to a credit cost of 1.74 percent for the year ended March 31, 2025, which is among the lowest in its peer group. The company also maintains a high collection efficiency of 98.3 percent, supported by a dedicated 327-member collections team operating across 38 locations.
Extensive Operational Reach and Capital Strength
InCred Finance boasts an extensive operational network with 158 branches spread across 152 cities in 19 states and Union Territories, reaching over 17,000 pin codes. Its technology team has expanded significantly, from 114 professionals in March 2023 to 152 by December 2025. The InCred app had garnered over 4.5 lakh users as of December 31, 2025.
The company's lender base comprises 51 institutions, including public and private sector banks, mutual funds, financial and development financial institutions, and small finance banks. InCred's capital adequacy ratio stood at 24.97 percent for the nine months ended December 31, 2025, well above the regulatory requirement of 15 percent. The firm has received strong ratings of AA-/Stable from both CRISIL Ratings and ICRA.