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Launch · Financial Services

InCred Group plans insurance and mutual fund ventures

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Date
Company
InCred
What it does
Financial services group
Kind
Launch
Amount
₹300 crore
Stage
expansion
Founded
2016
Sector
Financial Services

What they do

InCred Group is a financial services company with lending, capital, and money units

What happened

It plans to launch a general insurance joint venture with a foreign partner and a mutual fund house

Why it matters

The insurance venture will be capitalised at ₹300 crore and focus on health and motor insurance; inCred Money, with over 250,000 customers, will offer a…

The details

  • InCred Group plans to set up a general insurance joint venture with a foreign partner.
  • It also plans to launch a mutual fund house under its InCred Money unit.
  • The insurance venture will be capitalised at ₹300 crore from domestic investors.
  • InCred will own over 51% of the insurance business, focusing on health and motor insurance.
  • The overseas partner is identified and will likely own around 24% of the insurance entity.
  • The insurance venture will apply for an Irdai licence soon and launch within three to six months.
  • InCred Financial Services turned unicorn in November 2023 and may go public in 1-2 years.

The bigger picture

  • InCred Group is expanding into insurance and mutual funds to diversify its financial services offerings.
  • The insurance venture will use ML/AI tools for underwriting, aiming for a competitive edge.
  • InCred Capital is expected to hit ₹750 crore revenue in FY25, and three units may generate over $100 million pre-tax profit.
  • The group may consider a banking licence in 5-10 years when profit exceeds $1 billion.

About the business

  • InCred Group has four legal entities: InCred Financial Services, InCred Capital, InCred Money, and the planned general insurance business.
  • InCred Money helps retail clients invest in alternative assets including unlisted stocks and has over 250,000 customers and 20,000 daily users.
  • InCred Financial Services has assets under management of over ₹5,000 crore.
  • InCred Capital is expected to hit ₹750 crore revenue in FY25.

What happens next

  • Launch general insurance venture within three to six months.
  • Apply for Irdai licence soon.
  • InCred Financial Services likely to go public over next one to two years.
  • May consider applying for a banking licence in next five to ten years.

The deal

Type
launch

Founders

  • Bhupinder Singh, Founder and CEO

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More on InCred

Everything on InCred →