Fintech firm InCred touch the Rs 1,267 crore in revenue in FY24 from Rs 856 crore in FY23 . Moreover, its profit spike in a good ratio .
InCred’s revenue from operations grew 48% to Rs 1,267 crore in FY24 from Rs 856 crore in FY23, its financial statements accessed from the company’s website show.
It offers loans to businesses and consumers including home, education, personal, and two-wheeler loans. Interest received from the loan disbursement formed 94% of the total operating revenue which increased 45% to Rs 1,193 crore in FY24.
For the fintech firm, finance cost accounted for 52% of the overall expenditure which increased by 27.8% to Rs 455 crore in FY24. The company hired aggressively to keep up with the growth in FY24 which was evident from its 35.9% growth in employee benefits expenses.
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Depreciation along with legal, advertising, traveling, and other expenses took the firm’s overall cost up by 37.4% to Rs 871 crore in FY24 from Rs 634 crore in FY23..
InCred post 2.6X growth in profits to Rs 316 crore in FY24 from Rs 121 crore in FY23. Its ROCE and EBITDA margin improved to 5% and 34%, respectively. On a unit level, it spent Rs 0.69 to earn a rupee in FY24.
InCred turned unicorn after a $60 million funding led by Ranjan Pai’s MEMG Fund in December last year. Entrackr exclusively reported the development. According to the startup data intelligence platform TheKredible, KKR is the largest external stakeholder with 31.5% followed by B Singh Holding.
In FY24, InCred had total financial assets worth Rs 8,120 crore which included Rs 173 crore of cash and bank balances. Its enterprise value to revenue multiple stood at 6.7X in FY24.
InCred has done well to carve out its own space in a crowded market, and seems set to emerge as one of the more resilient firms in the space. Its record should enable access to more funding, especially debt funding that could be used to expand its balance sheet. Founder Singh has done more than enough to validate his premise of a strong market being missed by banks and many other financial institutions. The key issue is whether the future of the firm post its significant stake sale to KKR, considering how large conglomerates are on the prowl for healthy, well-established financial firms.
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