IKF Finance Sets ₹25,000 Crore AUM Target for 2030, Having Quadrupled Assets to Over ₹8,600 Crore in Four Years
New Delhi : Having quadrupled its assets under management (AUM) from ~₹2,100 crore in FY’22, IKF Finance MD Vasumathi Devi is now targeting ₹25,000 crore by 2030 with a digital push. The group ended FY’26 with consolidated AUM up ~30%, Profit After Tax of ₹215 crore, and a return on assets of ~3%. The Company has delivered ROE of 14% in past, with a clear path to sustained improvement, driven by proven control over credit costs, improved credit rating and better operating leverage with scale and technology.That growth rests on foundations IKF laid well before it arrived. When the pandemic shut branches, IKF moved the entire loan journey, from login and KYC to underwriting, eSign, e-mandate and disbursement, onto its own digital platforms, while keeping an IKF officer alongside the customer at every step. The result is one of the best turnaround times in vehicle finance, with loans approved and disbursed in as little as two days, and business that picked up pace after the pandemic.
In FY’26, IKF took what the MD calls its most strategic upgrade since COVID, moving from digitising individual processes to an integrated, data-led operating model. The group brought its data into a single, governed data lake and shifted to a cloud-native, AI-ready infrastructure, so that new use cases, from sharper credit scoring to early-warning signals, can plug in directly and the business can scale without costs rising in step.
IKF has also long outgrown its roots as a regional lender. What began in Andhra Pradesh and Telangana is now a pan-India franchise of over 350 branches across 13 states, spanning South, West and North India, with a foothold in the East. Most of the branches it added in FY’26 opened outside South India.
Its product base has widened just as far beyond the commercial vehicle financing it started with. IKF now runs five focused verticals (Cars, Commercial Vehicles, Small and Light Commercial Vehicles, Construction Equipment and MSME), along with loans against property and affordable home loans through its subsidiary, IKF Home Finance. Vehicle finance remains the core, now below 70% of AUM, with the MSME and LAP book at about 16% and home loans at about 14%. The book is well diversified across products and geographies, which helps it stay resilient through market cycles.
Behind the numbers is a professional leadership bench. Every CXO role across IKF Finance and IKF Home Finance, including the CEO and CFO of each entity, is held by leaders drawn from banking, NBFCs and corporate finance. Each vertical runs on its own underwriting playbook with clear ownership, and the board includes independent directors with deep experience in central banking, credit ratings and risk.
IKF’s investors have reinforced that discipline. Motilal Oswal has backed IKF since 2015, and in FY’26 Norwest came in as its largest institutional investor. Creador also came on board in FY26. Together, they have brought board-level governance as well as patient capital (including a record ₹750 crore raise in FY’26) and a shared vision for sustainable growth. Even after the round, the founding promoters remain IKF’s single largest shareholder, with one of the highest promoter holdings among its peers. This alignment was further strengthened through the strategic facilitation of exits for early shareholders, ensuring a committed institutional investor base focused on long-term value creation. The stronger capital base and governance helped lift IKF’s credit rating from A to AA- and lowered its cost of funds.
That governance is backed by controls built into day-to-day operations. The results show in asset quality: even as the book grew about 30%, gross NPA stood at 2.3%, collection efficiency at 97.9% and credit cost at about 1.2%. Despite macro headwinds, IKF has not sold any loans to asset reconstruction companies or resorted to repossessions over the last decade. It has been profitable every year since inception, with earnings driven by core lending rather than one-off gains from loan sales.
“Every stage of our growth has been built on execution. Our 35-year legacy rests on doing the basics consistently well: sound credit decisions, tight collections, strong controls and a board that holds us to high standards. We diversified our product portfolio early, well before scale demanded it, and over the last few years have added technology-led systems, professional leadership and robust governance, so that every rupee we add to the book is underwritten, monitored and controlled the same way. The scale we have built is only the beginning, and it is this composition of diversification, technology, leadership and governance that will carry us into the next phase,” said Vasumathi Devi Koganti, Managing Director, IKF Finance.
Adding to this, Vasantha Lakshmi Vupputuri, Managing Director of IKF Home Finance, the group’s housing finance subsidiary, said, “Affordable housing adds a secured, stable book to the group, and as we scale, IKF Home Finance will contribute meaningfully to group returns.”
Reaching ₹25,000 crore by 2030 will take about 30% growth a year, close to the pace IKF delivered in FY’26. Having quadrupled its book in four years with asset quality intact, the group now has the platform, portfolio and people to nearly triple it again. IKF isn’t betting on a new formula to get there, only on scaling the one that has already worked.
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