Mizuho Financial Group, a bank holding company from Japan is in discussion to buy a part of KKR's stake in fintech unicorn InCred, as reported by the Economic Times.
The latest discussion held so far indicates that global investment firm KKR might divest 10 per cent of its stake in InCred. However, the amount might change depending on the talks, adds the report.
InCred considers itself as a new-age financial services platform that leverages technology and data-science to make lending quick and easy. After obtaining $60 million in its Series D fundraising round, which valued the company at over $1.04 billion, InCred became a unicorn in December 2023. With this, InCred became the second unicorn in India in 2023, after Zepto, an e-commerce platform.
While typical secondaries happen at a lower valuation, for InCred it is different. The company is being held for up to thirty to forty percent premium over the $1.2 billion valuation at which the fintech platform had raised $60 million in December 2023.
As per the report, a source said, “This is being seen as the entry for certain investors before the IPO and the firm’s valuation is moving 30-40 per cent higher than the last funding valuation.” Ahead of its expected IPO in around two years, several other new investors are also planning to buy secondary stake in the Non-Banking Financial Company.
The merger between KKR and InCred was announced in July 2022. The fintech company merged with the non-banking financial company of KKR, KKR India Financial Services. The combined business operates under the brand name InCred Finance, and it is managed by the founder of the InCred group, Bhupinder Singh.
In the March 2024 quarter, the company’s net profit increased 80.69% to Rs 90.13 crore. This was against Rs 49.88 crore that was reported during the previous quarter in March 2023.
