By Abhay Ray 
Introduction
In a significant move ahead of InCred’s upcoming public listing, Zerodha co-founders Nithin and Nikhil Kamath have invested INR 250 crore to acquire a minority stake in InCred Holdings, the parent company of InCred Financial Services (IFSL). The investment comes just months before InCred’s planned Initial Public Offering (IPO), which is expected to raise INR 4,000–INR 5,000 crore and value the firm at USD 1.8–USD 2.5 billion.
The ₹250 Crore Investment at a Glance
The Kamath brothers Nithin and Nikhil, founders of Zerodha—have made a ₹250 crore investment in InCred Holdings, acquiring a minority stake through a direct share purchase. This funding comes strategically ahead of InCred’s anticipated initial public offering (IPO), boosting its capital reserves and market positioning. InCred, which operates a diversified non-banking financial company (NBFC), plans to use the funds to scale operations, strengthen its lending capabilities, and enhance its valuation before listing. The Kamaths’ investment is seen as a strong vote of confidence in InCred’s growth trajectory and leadership in India’s fintech and lending space. Known for backing high-potential ventures, the brothers’ involvement adds both financial weight and industry credibility. The move also reflects a broader trend of seasoned entrepreneurs supporting established NBFCs as they transition into the public market.
About InCred Financial Services
InCred Financial Services is a Mumbai-based non-banking financial company (NBFC) Founded in 2016 by Bhupinder Singh, a former Deutsche Bank executive. The company has grown rapidly over the years and has carved a niche in segments which are underserved by traditional banks. InCred Financial Services offering a diverse range of loan products, including personal loans, education loans, MSME lending, and financing for institutions, and significantly expanded through a merger with KKR India Financial Services in 2022, InCred has rapidly scaled its operations. As of FY24, it reported assets under management (AUM) of ₹9,039 crore and strong profitability, with ₹298 crore in net profit during the first nine months. The company maintains a healthy credit rating (CRISIL AA– / A1+) and operates with over 150 branches across India. InCred is part of the larger InCred Group, which also includes wealth and asset management under InCred Capital, and digital investment services via InCred Money.
Kamath Brothers’ Portfolio
This investment comes at a time when both, Nikhil and Nithin Kamath, are actively investing in the Indian startup ecosystem. Earlier this month, both the brothers participated in Biopeak’s $3.5 Mn funding round.
Bollywood actor Ranveer Singh’s protein supplements brand SuperYou also raised Series A funding from Nikhil and Nithin via Zerodha’s VC arm Rainmatter Capital.
Last year, Nikhil unveiled his grant initiative ‘WTFund’ for young entrepreneurs below the age of 25 to back 40 startups with a non-dilutive grant of INR 20 Lakh each. Zerodha’s consolidated revenue jumped 37.16% to INR 9,372.1 Cr in the financial year ended March 2024 (FY24) from INR 6,832.8 Cr in the previous fiscal year.
Wider Investment Strategy
The Kamath brothers’ investment in InCred aligns with their broader strategy of backing high-potential ventures in finance, fintech, and technology. Through entities like Rainmatter Capital and their family offices, they have consistently supported companies that promote financial inclusion, innovation, and long-term sustainability. Their portfolio includes stakes in firms like Nazara Technologies, Smallcase, Ditto Insurance, and RDC Concrete, reflecting a mix of digital platforms and real-sector businesses. This approach emphasizes long-term value creation over short-term gains. By investing in InCred—a mature, diversified NBFC—they are extending this philosophy to a company with strong fundamentals and IPO readiness. Their focus remains on scalable business models that can transform markets and serve large customer bases, especially in underserved segments. The InCred deal reinforces their vision of enabling next-generation financial infrastructure in India.
Implications for Investors and Market
The Kamath brothers’ ₹250 crore investment in InCred sends a strong signal to the market and potential investors. Their backing enhances InCred’s credibility, making it a more attractive proposition ahead of its IPO. For institutional and retail investors, this move reflects confidence in InCred’s business model, governance, and growth trajectory. It may also lead to increased investor interest, potentially boosting demand and valuation during the public offering. More broadly, the deal highlights a growing trend of seasoned entrepreneurs investing in NBFCs and fintechs poised for public listings. It underscores a shift in investor focus toward companies with strong fundamentals, diversified lending portfolios, and scalable tech-driven operations. For the market, it reinforces the importance of strategic capital ahead of IPOs and the value of combining operational strength with trusted investor partnerships.
Conclusion
The Kamath brothers’ ₹250 crore investment in InCred ahead of its IPO is a significant endorsement of the company’s strong fundamentals and growth potential. Their involvement not only strengthens InCred’s financial position but also enhances its market credibility, attracting further investor interest. This move highlights a broader trend of experienced entrepreneurs supporting fintech and NBFCs as they prepare for public listings. By backing a scalable, tech-driven lender like InCred, the Kamaths reinforce the importance of strategic capital and trusted partnerships in driving long-term success. Ultimately, this investment underscores confidence in India’s evolving financial ecosystem and the growing role of innovative NBFCs in meeting underserved market needs.
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