InCred and Zepto Advance IPO Plans Amidst Regulatory Progress

InCred Holdings Reports Strong Financial Performance Ahead of Filing

InCred Holdings, the parent entity of the Bengaluru-based non-banking financial company (NBFC) InCred Finance, has announced robust financial results for the first nine months of the fiscal year 2026 (9M FY26). The company posted a net profit of ₹290.1 Crore, reflecting a steady 5% increase compared to the ₹275.5 Crore recorded in the corresponding period of the previous fiscal year (9M FY25). This financial upswing coincides with InCred’s active preparations for its Initial Public Offering (IPO), a move that is closely watched in the financial sector.

The company’s revenue from operations has also seen substantial growth, surging by 38.6% to ₹1,848.9 Crore in 9M FY26, up from ₹1,333.9 Crore in the year-ago period. This impressive revenue expansion was primarily fueled by a significant increase in interest income, which constitutes over 90% of the total operating revenue. Interest income for the period stood at ₹1,688.6 Crore, a 39% rise from ₹1,214.3 Crore in 9M FY25. While dividend income was nil in 9M FY26, down from ₹2.5 Crore in the prior year, fees and commission income climbed a notable 58.9% year-on-year to ₹149.8 Crore from ₹94.3 Crore. Other income also more than doubled, contributing to the overall positive financial trajectory.

Further underscoring its operational strength, InCred Holdings’ Earnings Before Interest, Taxes, , and Amortization () rose by 32% to ₹1,103.5 Crore in 9M FY26, from ₹835.9 Crore in 9M FY25. The company also filed its updated Draft Red Herring Prospectus (DRHP) for its public issue, which is set to include a fresh issue of up to ₹1,250 Crore and an offer-for-sale () component of up to 9.9 Crore equity shares.

InCred Holdings: A Deep Dive into its Diversified Business Model

Founded in 2017 by Bhupinder Singh, InCred Holdings operates as the parent company for InCred Financial Services, a retail-focused, diversified NBFC registered with the Reserve Bank of India (RBI). The NBFC contributes over 99.8% of InCred Holdings’ operating revenue, highlighting its central role in the group’s financial performance. InCred Holdings also encompasses other entities within the BFSI sector, namely InCred Capital and InCred Money, creating a multi-faceted financial services conglomerate.

As of December 2025, InCred Finance reported (AUM) of ₹14,447.8 Crore. Personal loans represented the largest segment, accounting for 55.6% of the AUM, followed by student loans at 22.2%, which is noted as the fastest-growing product in its portfolio. Other segments, including secured business loans, specialized MSME lending, and lending to financial institutions, constitute the remainder of its AUM and are growing at a more moderate pace.

The company’s lending strategy targets specific customer profiles. Its personal loans are directed towards salaried individuals with an average monthly income exceeding ₹40,000. For student loans, InCred focuses on Indian students pursuing postgraduate STEM and business courses in North America and Europe. On the business lending front, InCred Finance offers loans against property for working capital needs, provides school financing for K-12 institutions in Tier II and III cities, and offers embedded financing solutions for online marketplace sellers. Additionally, it extends asset-backed financing to SMEs and mid-corporates, as well as term loans to smaller NBFCs for their onward lending activities.

Asset Quality and Strategic Acquisitions

InCred Finance has maintained largely stable asset quality over recent years, reporting a gross NPA ratio of 2.28% and a net NPA ratio of 0.87% in 9M FY26. This indicates a prudent approach to risk management amidst its expanding operations.

Beyond its core lending business, InCred Holdings has strategically expanded its portfolio through acquisitions. In February 2025, the group acquired the gold loan division of TruCap Finance and the Dubai-based financial advisory firm Arrow Capital (DIFC) Limited. More recently, in June 2025, it acquired Delhi-based trading platform Stocko, further broadening its reach in the financial services landscape. These acquisitions underscore InCred’s ambition to diversify and strengthen its market presence across various financial segments.

InCred’s IPO Plans and Funding Landscape

InCred Holdings filed its initial IPO papers with the Securities and Board of India (SEBI) through the confidential route in November. Key investors, including KKR, MNI Ventures, Mohandas Pai Family, and Moore Strategic, are expected to offload a portion of their shares during the IPO. The capital raised from the fresh issue is intended to bolster the company’s Tier I capital base and enhance its capital adequacy, crucial for supporting future growth and regulatory compliance.

According to market research by CRISIL Intelligence cited in the UDRHP, InCred is recognized as the second fastest-growing diversified NBFC in terms of AUM (CAGR) between FY23-25, trailing only Poonawalla Fincorp. However, its AUM is considerably smaller than that of peers such as Bajaj Finance, Aditya Birla Capital, HDB Financial Services, SMFG India Credit, and Hero Fincorp. A significant portion of its AUM is concentrated in the personal loans segment, a factor that investors will closely evaluate.

To date, InCred Group has successfully raised over $450 million in funding from investors including Varanium Capital Advisors, Sattva Group, and Paragon Partners. In a recent funding round, InCred Money secured ₹250 Crore ($30 million) from prominent investors such as Ranjan Pai, Chairman of Manipal Group, and former Deutsche Bank executive Ram Nayak, among others, at a valuation of ₹1,650 Crore ($200 million).

InCred Holdings’ Expenditure Breakdown

InCred’s total expenses for 9M FY26 saw a significant increase of 52.3%, rising to ₹1,471.15 Crore from ₹966.1 Crore in the same period of the previous year. This rise in expenditure reflects the company’s growth initiatives and expanding operations.

The largest component of these expenses was finance costs, which amounted to ₹673.2 Crore in 9M FY26, a 51.4% increase from ₹444.8 Crore a year earlier. Impairment on financial instruments (net of recoveries) also saw a substantial jump, increasing by 85.5% year-on-year to ₹233.6 Crore. Employee benefit expenses grew by 28% to ₹310.7 Crore from ₹242.6 Crore, indicating an expansion in its workforce. Collection expenses more than doubled, rising by 84% to ₹79.2 Crore in 9M FY26 from ₹42.9 Crore in the prior year, suggesting increased efforts in loan recovery and management.

Zepto Secures SEBI Approval for $1 Billion IPO

In parallel developments, quick commerce startup Zepto has achieved a significant milestone by receiving approval from the Securities and Exchange Board of India (SEBI) for its proposed $1 billion IPO. SEBI issued its observations on Zepto’s draft red herring prospectus (DRHP) between May 4 and May 8, marking a crucial step forward for the company’s public offering plans. This regulatory clearance positions Zepto to move closer to its goal of becoming a publicly listed entity, reflecting investor confidence in the rapidly growing quick commerce sector.