Pune: InCred Holdings Limited filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (InCred Holdings IPO).
The company, which primarily operates through its material subsidiary InCred Financial Services Limited (InCred Finance), said it has emerged as India’s fastest-growing diversified NBFC in terms of PAT CAGR and the second fastest in AUM CAGR between FY23 and FY25, according to CRISIL.
InCred Holdings Limited generates almost its entire revenue and undertakes its business activities through InCred Finance, a retail-focused diversified middle-layer non-banking financial company registered with the Reserve Bank of India.
InCred Holdings IPO: Lending Portfolio Spread Across Five Verticals
Promoted by Bhupinder Singh in 2017, InCred Finance offers a diversified suite of lending products catering to multiple customer segments.
The company said its business model is supported by a risk-first approach, a technology-driven platform, a multi-channel distribution network, and an experienced management team.
The company’s lending portfolio is spread across five verticals. Personal Loans contributed 55.56% of assets under management (AUM), amounting to ₹8,027.12 Crores.
Student Loans accounted for 22.15% or ₹3,200.51 Crores. Secured Business Loans, including loan against property and school financing, contributed 8.74% or ₹1,262.64 Crores.
Specialised MSME Loans, including embedded and asset-backed financing, made up 7.83% or ₹1,131.14 Crores, while Loans to Financial Institutions contributed 5.55% or ₹801.40 Crores as of December 31, 2025.
As per the filing related to the InCred Holdings IPO, the company’s AUM stood at ₹12,585.07 Crores as of March 31, 2025. Profit after tax (PAT) for the same period stood at ₹373.15 Crores, while return on assets (ROA) was reported at 3.45%.
Between FY23 and FY25, the company reported AUM CAGR growth of 44.04% and PAT CAGR growth of 84.97%.
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According to CRISIL, this positioned InCred Finance as the fastest-growing diversified NBFC in terms of PAT CAGR and the second fastest-growing in terms of AUM CAGR among diversified peers.
For the nine months ended December 31, 2025, AUM stood at ₹14,447.86 Crores, while PAT came in at ₹290.14 Crores. Disbursements during the same period reached ₹6,683.28 Crores.
Operational metrics remained stable for the period ended December 31, 2025. Portfolio yields were reported at 18.39%, while the average cost of total borrowings stood at 10.05%, indicating stable spreads.
InCred Holdings IPO Filing Highlights Risk Management and Asset Quality Metrics
The company stated that its lending philosophy is anchored in a risk-first approach backed by an AI-enabled proprietary technology platform developed in-house.
The company reported the second lowest credit cost of 1.74% among diversified peers for the financial year ended March 31, 2025. Gross stage 3 loans stood at 2.28% as of December 31, 2025, compared with 2.05% as of December 31, 2024.
Net stage 3 loans stood at 0.87% and 0.79% respectively during the same periods.
Collection efficiency was reported at 98.30%, supported by a 327-member collections team operating across 38 locations.
Operations are led by Bhupinder Singh, who has more than two decades of experience in the financial services sector. Chief Financial Officer Gaurav Maheshwari has over 27 years of experience.
Prithviraj Chandrasekhar, who heads Consumer Finance, and Saurabh Jhalaria, who heads Education and MSME lending, have both been associated with the company since 2017.
InCred Holdings IPO: Multi-Channel Distribution Network Combining Digital Capabilities with Physical Presence
The company operates through a multi-channel distribution network that combines digital capabilities with physical presence. As of December 31, 2025, it had 158 branches across 152 cities in 19 states and union territories, with reach extending to more than 17,000 pin codes nationwide.
Technology continues to remain central to the company’s strategy. The technology team expanded from 114 professionals as of March 31, 2023 to 152 professionals as of December 31, 2025.
The company’s “InCred” app enables a paperless loan journey and had more than 4.5 lakh users as of December 31, 2025.
The lender base is diversified across 51 institutions, including public sector banks, private sector banks, mutual funds, financial institutions, development financial institutions, and small finance banks.
As detailed in the InCred Holdings IPO documents, the company’s capital adequacy ratio (CRAR) stood at 24.97%, significantly above the regulatory requirement of 15%.
The company is rated AA-/Stable by CRISIL Ratings Limited and ICRA Limited for the nine-month period ended December 31, 2025.
The proposed InCred Holdings IPO comprises a fresh issue of equity shares aggregating up to ₹1,250 Crores and an offer for sale of up to 99,020,833 equity shares.
The offer for sale includes participation from shareholders including KKR India Financial Investments Pte. Ltd., MNI Ventures, MEMG Family Office LLP, and V’Ocean Investments Ltd., among others.
According to the filing, the company plans to utilise the net proceeds from the InCred Holdings IPO primarily for investment in its wholly owned subsidiary, InCred Finance, to augment its capital base.
The InCred Holdings IPO proceeds will be used to strengthen Tier-I capital, support onward lending activities, and improve CRAR.
IIFL Capital Services Limited, InCred Capital Wealth Portfolio Managers Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, and UBS Securities India Private Limited are acting as the bankers to the issue.
