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Fintech unicorn Incred posts Rs 109 Cr profit in FY23

Fintech firm Incred entered the coveted unicorn club after a $60 million fundraising in its Series D round in December last year.

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Kunal Manchanda & Harsh Upadhyay
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InCred

Fintech firm Incred entered the coveted unicorn club after a $60 million fundraising in its Series D round in December last year. The fundraise came on the back of its notable growth in scale and profits during FY23.

Incred’s revenue from operations spiked 77.46% to Rs 866 crore during FY23 from Rs 488 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.

Financials FY23

Check detailed 3 year financial comparison on thekredible.com

Founded by Bhupinder Singh, InCred offers loans to businesses and consumers. Its portfolio covers home, education, personal, and two-wheeler loans for consumers. Interest income accounted for 95% of the total operating revenue which increased 74% to Rs 823 crore in FY23. 

The rest of the collections come from platform fees, commissions, dividends, and other operating activities in the last fiscal year.

Revenue Breakdown

FY22

Total ₹ 488 Cr

FY23

Total ₹ 866 Cr

    See TheKredible for the detailed revenue breakup.

    Like most fintech or loan-providing firms, its finance cost aka interest expenses formed 57% of the overall expenditure. In line with scale, this cost rose by 62.6% to Rs 356 crore in FY23 from Rs 219 crore in FY22. Its employee benefits saw an increase of 38% during FY23.

    Incred’s expense on information technology, legal-professional, advertising, and other overheads took its total cost up by 30.7% to Rs 630 crore in FY23 from Rs 482 crore in FY22.

    Expenses Breakdown

    FY22

    Total ₹ 482 Cr

    FY23

    Total ₹ 630 Cr

    • Finance cost

    • Employee benefits

    • Information technology

    • Legal professional charges

    • Advertising promotional expenses

    • Others

    Check TheKredible for complete expense bifurcation.

    The significant 77.46% surge in scale helped the KKR-backed firm to push its profits by 3.5X to Rs 109 crore in FY23 as compared to Rs 31 crore in FY22. Its ROCE and EBITDA margin improved to 10% and 30% respectively. On a unit level, it spent Rs 0.73 to earn a rupee in FY23.

    FY22-FY23

    FY22 FY23
    EBITDA Margin 10% 30%
    Expense/₹ of Op Revenue ₹0.99 ₹0.73
    ROCE 4% 10%

    Incred claims to have built a loan book of Rs 7,500 crore within the last six years and it reported profit before tax of Rs 170 crore in H1 FY24.The firm is also gearing up to enter the insurance business. Entrackr exclusively reported this in November.

    Among peers, Incred counts Lendingkart which posted Rs 798 crore revenue with a profit of Rs 118 crore in FY23 and Axio (formerly Capital Float) whose revenue stood at Rs 220 crore with a loss of Rs 261 crore FY23. The lending space is getting crowded, and it is doing so at a time when some alarm bells have also been ringing on rising risks. However, the worries have been in the retail segment with the small business segment relatively calm. With interest rates set to remain benign in the near future, the lack of any disruption bodes well for Incred, allowing the firm to focus on its key target of acquiring more and better customers. 

    While we don't have a breakup yet, segments like student loans surely call for some watching, considering all the issues being raised, especially when it comes to overseas student loans. A tight job market in those regions might just transmit an impact to lenders in India that have been backing student ambitions with loans.

    InCred Revenue profit FY23
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