In a strategic move signaling growing investor confidence in India’s fast-evolving fintech and lending ecosystem, Zerodha co-founders Nithin and Nikhil Kamath have acquired a minority stake worth Rs 250 crore in InCred Holdings. The deal is not only a financial investment but also a strong endorsement of the InCred Group’s vision of technology-driven, responsible lending.
A Timely Investment Ahead of IPO
The Kamath brothers’ investment comes at a crucial juncture as InCred Financial Services (IFSL) gears up for its much-anticipated Initial Public Offering (IPO). Market estimates suggest that the IPO could raise between Rs 4,000-5,000 crore, pegging InCred’s valuation in the $1.8 billion to $2.5 billion range. This could further solidify InCred’s position in the Indian fintech and NBFC space.
Why the Kamaths Are Betting on InCred
Nikhil Kamath, commenting on the rationale behind the investment, stated:
“India’s credit ecosystem is changing fast, more formal, more digital, and more accessible. InCred Group seems to get that.”
He emphasized that InCred’s strong team, tech-first approach, and clear market vision are aligned with the evolving landscape of financial services in India. For the Kamaths, this move represents a strategic bet on India’s digital lending transformation, one where responsible and scalable lending models can thrive without compromising on fundamentals.
InCred’s Core Pillars: Finance, Capital, and Money
Founded by Bhupinder Singh, a former Deutsche Bank executive, InCred Group is structured around three major entities:
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InCred Finance – A tech-first NBFC focused on consumer, SME, and education lending. It uses proprietary risk analytics, data science, and digital-first operations to serve India’s growing retail and MSME lending needs.
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InCred Capital – The group’s wealth and asset management arm that also provides M&A advisory, capital markets services, and equity research. It recently raised $50 million primarily from family offices.
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InCred Money – A platform for investment products and wealth solutions, catering to the needs of both retail and HNI investors.
To date, InCred Finance has raised over $370 million, with its Series D round of $60 million propelling it into the unicorn club—a rare feat among Indian NBFCs.
The Big Picture: A Broader Shift in India’s Credit Landscape
India’s credit penetration remains relatively low, especially in the MSME and underserved segments. But the tide is turning, driven by digital infrastructure like Aadhaar, UPI, and Account Aggregators. In this environment, NBFCs with strong tech capabilities and data-driven underwriting, such as InCred, are well-positioned to capitalize on the opportunity.
The Kamaths’ investment is not just a capital infusion—it’s a signal to the market that India’s next phase of financial inclusion will be driven by innovation, responsibility, and scale.