In a significant pre-IPO move, Zerodha co-founders Nithin and Nikhil Kamath have invested ₹250 crore in InCred Holdings, marking one of their largest private bets in the fintech space. The deal grants the Kamath brothers a substantial equity stake in the parent company of InCred Financial Services Ltd (IFSL), a rapidly growing NBFC in India.
InCred Eyes ₹4,000 Crore IPO
The timing of this strategic investment is noteworthy as InCred is reportedly in advanced discussions with advisors to file documents for an Initial Public Offering (IPO) by October 2025. The company aims to raise approximately ₹4,000 crore (around $470 million) through the IPO, according to Bloomberg.
InCred Holdings is the parent entity of InCred Financial Services, which operates as a technology-first, data-driven NBFC offering diversified loan products. Its focus areas include retail lending, SME loans, and education financing, segments that have shown strong growth momentum in India’s evolving credit landscape.
Why the Kamaths Are Betting on InCred
In a public statement, Nikhil Kamath remarked on the shift in India’s credit ecosystem, describing it as “more formal, more digital, and more accessible.” He credited InCred for building a “strong team with a tech-first approach and a clear market vision,” underscoring their belief in the company’s scalability and alignment with the future of lending in India.
The Kamaths’ investment signals strong confidence in the credibility and future trajectory of InCred, especially at a time when the startup is gearing up for public market scrutiny.
Inside InCred’s Rise
Founded in 2016 by Bhupinder Singh, InCred has emerged as a prominent player in the Indian lending landscape. The platform leverages proprietary risk analytics, deep data science, and digital-first operations to serve both retail and MSME borrowers. Its holding company, InCred Holdings Ltd, oversees the NBFC’s operations, which include education loans, consumer credit, and SME financing.
InCred’s tech-centric lending model and data-led underwriting have been instrumental in its growth, particularly as traditional banks slow down on unsecured lending.
Industry Implications
This high-profile investment happens when investor enthusiasm in India’s fintech and NBFC segment is recovering, after a short phase of over-regulation. With Zerodha’s promoters coming in, it could draw more institutional and retail investor attention before InCred’s IPO.
Also, the development indicates how India’s leading fintech founders are not only building startups but are actually shaping the future of financial institutions with strategic investments.
About the Investors:
Zerodha, founded in 2010 by the Kamath brothers, is India’s largest retail stock brokerage by volume and is widely known for its bootstrapped and profitable growth model. Nikhil Kamath, in particular, has become a prominent investor in startups and alternative assets through his family office and ventures like Gruhas.
About InCred:
InCred is a pan-India fintech-NBFC headquartered in Mumbai that is focused on education loans, personal credit, and SME funding. It has built a pan-India reach and is making use of data science to provide credit to the underbanked and underserved segments.
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