Fintech unicorn InCred has reported significant financial growth for FY24, with revenue soaring to Rs 1,267 crore and a profit after tax (PAT) reaching Rs 316 crore. Over the past two fiscal years, the Mumbai-based firm has experienced a 2.6X increase in revenue from Rs 488 crore in FY22, while profits surged over 10X during the same period.
InCred’s financial statements, accessible from the company’s website, reveal that revenue from operations grew by 48% to Rs 1,267 crore in FY24, up from Rs 856 crore in FY23. Founded by Bhupinder Singh, InCred provides a range of loan products to businesses and consumers, including home, education, personal, and two-wheeler loans. Interest received from loan disbursement comprised 94% of the total operating revenue, amounting to Rs 1,193 crore, a 45% increase from the previous year.
The company also generated revenue from fees, commissions, and dividends. Additionally, InCred earned Rs 26 crore from other income, bringing the total revenue to Rs 1,293 crore in FY24.
On the expenditure side, finance costs accounted for 52% of the overall expenses, increasing by 27.8% to Rs 455 crore. The company’s aggressive hiring strategy to support its growth led to a 35.9% rise in employee benefits expenses. Overall costs, including depreciation, legal, advertising, travel, and other expenses, increased by 37.4% to Rs 871 crore in FY24 from Rs 634 crore in FY23.
Despite the rise in expenses, InCred’s strategic cost management and revenue growth enabled it to post a 2.6X increase in profits to Rs 316 crore in FY24, up from Rs 121 crore in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margin improved to 5% and 34%, respectively. In FY24, InCred spent Rs 0.69 to earn a rupee.
InCred achieved unicorn status after raising $60 million in funding led by Ranjan Pai’s MEMG Fund in December last year, a development exclusively reported by Entrackr. According to TheKredible, a startup data intelligence platform, KKR is the largest external stakeholder with a 31.5% share, followed by B Singh Holding.
As of FY24, InCred held total financial assets worth Rs 8,120 crore, including Rs 173 crore in cash and bank balances. Its enterprise value to revenue multiple stood at 6.7X.
InCred has successfully established itself in a competitive market, positioning itself as a resilient player in the fintech space. The firm’s strong financial performance is expected to facilitate access to further funding, particularly debt financing to expand its balance sheet. Founder Bhupinder Singh’s vision of addressing a market underserved by traditional banks has been validated. However, the future trajectory of InCred after its significant stake sale to KKR will be closely watched, especially given the interest of large conglomerates in acquiring robust financial firms.
