In a significant development in the fintech sector, Japan’s Mizuho Financial Group is in discussions to acquire a part of KKR’s stake in Mumbai-based tech-driven non-banking finance company (NBFC) InCred Finance. This move, if successful, would mark a strategic investment by Mizuho in a prominent Indian financial services unicorn, further enhancing its footprint in the burgeoning Indian fintech landscape.

Background and Current Discussions

According to sources familiar with the matter, global investment firm KKR is considering selling around 10% of its stake in InCred Finance. However, the exact percentage may vary as talks progress. The discussions indicate that Mizuho might acquire this stake at a premium to InCred’s last valuation of $1.2 billion. This valuation was achieved during a funding round in December 2023, when InCred raised $60 million.

Multiple individuals aware of the ongoing negotiations have noted that this transaction is being viewed as a premium buy-in opportunity ahead of InCred’s potential initial public offering (IPO) within the next one to two years. The terms are still being finalized, but the valuation could be 30-40% higher than the last funding round, contrary to the typical trend of secondary sales occurring at lower valuations.

Strategic Importance of the Deal

Mizuho Financial Group, one of Japan’s largest financial institutions with significant operations in banking and asset management, sees this acquisition as a strategic entry into the Indian fintech market. This deal aligns with Mizuho’s broader strategy to expand its international operations and leverage the growth potential of emerging markets like India.

InCred, founded by former Deutsche Bank executive Bhupinder Singh, has rapidly grown into a major player in the Indian NBFC sector. The company offers a range of financial products, including personal loans, education loans, and merchant and MSME business loans. InCred’s innovative approach and robust technological infrastructure have positioned it as a leader in tech-driven financial services.

InCred’s Growth Trajectory

InCred’s journey to becoming a unicorn has been marked by significant milestones. The company merged with KKR’s non-banking financial company, KKR India Financial Services, in 2022. This merger created a powerful entity that combines InCred’s tech-driven financial solutions with KKR’s robust financial backing and expertise. The merged entity is currently managed by Bhupinder Singh, with KKR and other investors holding substantial stakes.

In December 2023, InCred achieved unicorn status after raising $60 million from a group of high-net-worth individuals (HNIs), including the family office of Manipal Group chairman Ranjan Pai. This funding round not only boosted InCred’s valuation but also underscored the confidence of seasoned investors in the company’s business model and growth prospects.

Financial Performance and Market Position

InCred’s financial performance has been strong, with a diversified loan portfolio contributing to its stability and growth. Rating agency Crisil recently upgraded InCred Finance’s long-term rating, reflecting the company’s solid financial health. As of December 31, 2023, InCred had a net worth of Rs. 3,218 crore, up from Rs. 2,484 crore as of March 31, 2023. The company’s loan book also saw impressive growth, increasing to over Rs. 8,000 crore by the end of December, marking an annualized growth rate of 43%.

InCred’s ability to maintain a diversified portfolio, offering various loan products, has been a key factor in its growth. The company’s focus on leveraging technology to streamline operations and enhance customer experience has set it apart in a competitive market.

Future Prospects and Strategic Implications

The potential acquisition of KKR’s stake by Mizuho comes at a time when InCred is preparing for its next phase of growth. The company is eyeing an IPO within the next couple of years, and the entry of a major financial institution like Mizuho could significantly bolster its market position and credibility. Mizuho’s investment would bring not only capital but also strategic expertise and a global perspective, which could be invaluable as InCred scales its operations.

Additionally, the involvement of other potential investors in the talks suggests a strong interest in InCred’s growth story. This multi-investor interest could lead to a more competitive bidding process, potentially driving up the valuation further and providing InCred with additional resources to fuel its expansion.


Mizuho Financial Group’s potential acquisition of a stake in InCred Finance marks a pivotal moment in the Indian fintech sector. This strategic move underscores the growing interest of global financial giants in the Indian market, driven by the country’s rapid digital transformation and expanding fintech ecosystem.

For InCred, the investment would not only enhance its financial base but also bring in strategic insights and global best practices, positioning it well for future growth and a successful IPO. As the discussions progress, the outcome will be closely watched by industry stakeholders, reflecting broader trends in the convergence of technology and financial services in India.

By leveraging this potential investment, InCred is poised to further solidify its position as a leading tech-driven NBFC, driving innovation and financial inclusion in India’s rapidly evolving financial landscape.

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Saiba Verma, an accomplished editor with a focus on finance and market trends, contributes to Atom News with a dedication to providing insightful and accurate business news. Saiba Verma analytical approach adds depth to our coverage, keeping our audience well-informed.