InCred Files Updated DRHP for IPO
Fintech and lending platform InCred Holdings, the parent entity of InCred Financial Services, has filed its updated draft red herring prospectus (UDRHP) with Securities and Exchange Board of India for its upcoming IPO.
The company plans to raise:
- ₹1,250 crore through a fresh issue
- Additional capital through an offer for sale (OFS)
Strong Revenue Growth in FY26
InCred reported robust financial growth during the first nine months of FY26.
Financial Highlights (9M FY26):
- Revenue from operations: ₹1,849 crore
- Year-on-year growth: 39%
- Net profit: ₹290 crore
The company maintained profitability despite rising operational and credit costs.
Business Model and Lending Segments
Founded in 2017 by Bhupinder Singh, InCred operates as a diversified retail-focused NBFC.
The company offers lending products across multiple categories:
- Personal loans
- Student loans
- Secured business loans
- MSME loans
- Loans to financial institutions
Its diversified portfolio helps reduce dependence on a single lending segment.
Interest Income Drives Revenue
Interest income remained the primary source of earnings for the company.
Revenue Breakdown:
- Interest income: ₹1,689 crore
- Fees and commissions: ₹150 crore
- Other income: ₹21 crore
Interest income contributed over 91% of total operating revenue.
Rising Costs and Loan Write-Offs
While revenue increased significantly, InCred also witnessed a rise in expenses.
Key Expense Highlights:
- Finance costs: ₹673 crore (up 51%)
- Employee expenses: ₹311 crore (up 28%)
- Loan impairment losses and write-offs: ₹234 crore (up 86%)
The sharp rise in credit losses impacted overall profitability growth.
Asset Strength and Liquidity Position
During the first nine months of FY26, InCred reported:
- Total financial assets: ₹14,269 crore
- Cash and bank balance: ₹931 crore
The company maintains a strong balance sheet as it prepares for public listing.
IPO Structure and Investors
The IPO will include:
- Fresh issue worth ₹1,250 crore
- Offer for sale of up to 9.90 crore equity shares
Existing investors participating in the OFS include:
- KKR
- MNI Ventures Mohandas Pai Family
- Moore Strategic
- V’Ocean Investments
India’s Growing Digital Lending Market
The digital lending sector in India continues to grow due to:
- Rising credit demand
- Expanding fintech adoption
- Increased digital financial inclusion
Companies like InCred are benefiting from the growing shift toward technology-driven lending solutions.
Final Thoughts
InCred’s strong revenue growth ahead of its IPO reflects the rapid expansion of India’s fintech lending ecosystem.
While higher write-offs and operational costs impacted profit growth, the company continues to scale across multiple lending segments.
As the IPO market regains momentum, InCred’s public listing will be closely watched by investors tracking India’s evolving fintech landscape.
