Bangalore: InCred Holdings Limited, primarily operating through its material subsidiary InCred Financial Services Limited (‘InCred Finance’), which is recognized as India’s fastest-growing diversified NBFC in terms of PAT CAGR and the second fastest in AUM CAGR between FY23 and FY25 (Source: CRISIL), has filed its Updated Draft Red Herring Prospectus – I (UDRHP – I) with market regulator Securities and Exchange Board of India (SEBI).
InCred Holdings Limited generates almost its entire revenue and conducts its business activities primarily through the material subsidiary, InCred Finance, which is a retail-focused, diversified, middle-layer non-banking financial company registered with the Reserve Bank of India.
Promoted by Bhupinder Singh in 2017, InCred Finance offers a broad suite of loan products tailored to the diverse needs of the customers, supported by a risk-first approach, a technology-driven platform, a robust multi-channel distribution network, and an experienced management team. The Company offers a diversified lending portfolio across five key verticals including Personal Loans contributing 55.56% of AUM (₹8,027.12 Crores), followed by Student Loans at 22.15% (₹3,200.51 Crores), Secured Business Loans including loan against property and school financing at 8.74% (₹1,262.64 Crores), Specialised MSME Loans including embedded and asset-backed financing at 7.83% (₹1,131.14 Crores), and Loans to Financial Institutions at 5.55% (₹801.40 Crores) as at December 31, 2025.
As at March 31, 2025, the Company’s AUM stood at ₹12,585.07 Crores, with a PAT of ₹373.15 Crores and ROA of 3.45%. Between FY23 and FY25, AUM and PAT grew at a CAGR of 44.04% and 84.97%, respectively, positioning it as the fastest growing diversified player in terms of PAT CAGR and the second fastest in terms of AUM CAGR among the diversified peers. As at December 31, 2025, AUM stood at ₹14,447.86 Crores, with PAT of ₹290.14 Crores for the nine-month period. Disbursements were ₹6,683.28 Crores for the nine months ended December 31, 2025. Operational metrics remained stable, with portfolio yields trending at 18.39% and average cost of total borrowings at 10.05%, indicating stable spreads for the nine months ended December 31, 2025.
Company’s lending philosophy is anchored in a risk-first approach backed by its AI-enabled, in-house developed proprietary tech platform. This is reflected in gross and net carrying amounts (stage 3 loans) remaining stable across periods with company achieving second lowest credit cost of 1.74% amongst its diversified peers for the year ended March 31, 2025. Gross stage 3 loans stood at 2.28% as at December 31, 2025, compared to 2.05% as at December 31, 2024 while Net stage 3 loans were 0.87% and 0.79% as at December 31, 2025 and December 31, 2024 respectively. Asset quality remains strong with collection efficiency of 98.30%, backed by a 327-member collections team across 38 locations.
Company’s operations are led by Bhupinder Singh who has over two decades of experience in the financial services sector while Gaurav Maheshwari, the Chief Financial Officer, has over 27 years of experience. Both Prithviraj Chandrasekhar who heads Consumer Finance and Saurabh Jhalaria who heads Education and MSME lending business have been associated with the company since 2017.
The Company leverages a multi-channel distribution network, combining digital platforms and a physical presence of 158 branches across 152 cities in 19 states and union territories, with reach across 17,000+ pin codes nationwide. Technology remains central to its strategy, with the tech team expanding from 114 to 152 professionals between March 31, 2023 and December 31, 2025. Its “InCred” app enables a seamless, paperless loan journey and had over 4.5 lakh users as at December 31, 2025. The lender base is diversified across 51 institutions, including public and private sector banks, mutual funds, financial and development financial institutions, and small finance banks.
The company’s capital adequacy ratio (CRAR) stood at 24.97%, well 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 offer 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 multiple shareholders such as KKR India Financial Investments Pte. Ltd., MNI Ventures, MEMG Family Office LLP, V’Ocean Investments Ltd., amongst others.
The Company proposes to utilise the net proceeds primarily for investment in its wholly owned subsidiary, InCred Finance, to augment its capital base. The funds will be used to strengthen Tier-I capital, support onward lending, and improve the subsidiary’s 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 the bankers to the issue.