Kamath Brothers Acquire Rs 250 Crore Minority Stake in InCred Ahead of IPO

Zerodha co-founders Nithin and Nikhil Kamath have acquired a Rs 250 crore minority stake in InCred Holdings, the parent company of InCred Financial Services, ahead of the latter's anticipated IPO valued between $1.8 billion and $2.5 billion. InCred is a technology-driven NBFC focusing on consumer, SME, and education lending, leveraging proprietary risk analytics, data science, and digital-first operations to serve retail and MSME borrowers across India. The Kamath brothers praised InCred's technology-first approach and strong team, viewing their investment as a bet on the formalization and digitization of India's credit ecosystem. InCred is classified as an 'upper layer' NBFC by the Reserve Bank of India, requiring mandatory listing by September 2025 under RBI's scale-based regulations. The investment underscores sustained investor confidence in India's evolving, data-driven credit landscape. InCred's IPO preparation involves discussions with major financial firms and aims to capitalize on shifts in borrower behavior and financial penetration in India.