Mizuho in Talks to Acquire Stake in Indian Fintech Unicorn InCred

Japan’s Mizuho Financial Group is reportedly in negotiations to acquire a portion of KKR’s stake in InCred Finance, a leading Indian fintech company. This potential deal signifies growing interest from established financial institutions in the burgeoning Indian fintech space.

Premium Valuation on the Table

Discussions are reportedly focused on KKR divesting around 10% of its ownership in InCred. Notably, the negotiations involve a premium of 30-40% over InCred’s most recent valuation of $1.2 billion, which was established during a $60 million funding round in December 2023. This premium pricing suggests strong investor confidence in InCred’s future prospects.

Strategic Investment for Potential IPO

Industry sources speculate that this acquisition could be a strategic move for Mizuho to gain a foothold in the Indian market before InCred’s potential initial public offering (IPO) within the next two years. The premium valuation reflects an anticipated surge in InCred’s value leading up to a public listing.

Beyond Mizuho: Increased Investor Interest

Mizuho is not the only investor exploring opportunities in InCred. Other financial institutions are also reportedly interested in acquiring a stake in the company ahead of its potential IPO. This heightened investor interest underscores the immense potential of the Indian fintech sector.

About InCred Finance

Founded in 2016 by Bhupinder Singh, InCred Finance is a tech-driven non-banking finance company (NBFC) headquartered in Mumbai. The company offers a variety of financial services, including lending, wealth management, and alternative investments. InCred achieved unicorn status in December 2023 after securing $60 million in funding.

Strong Financial Performance

InCred Finance has demonstrated robust financial growth. The company’s net profit for the financial year 2022-23 (FY23) quadrupled to INR 120.9 crore compared to INR 30.8 crore in the previous year. This impressive performance was driven by a significant increase in interest income and fees and commission income.

Looking Ahead: Growth and Expansion

With established financial institutions like Mizuho expressing interest in InCred, the company is well-positioned for continued growth and expansion. The potential IPO and increasing investor confidence paint a bright future for InCred as it navigates the dynamic Indian fintech landscape.