Mizuho Explores Investment in InCred Finance, Eyes Stake Acquisition from KKR

Mizuho's Potential Investment in InCred Finance Signals New Opportunities in India's Fintech Frontier

In a move signaling potential expansion and strategic investment, Mizuho Financial Group, one of Japan's largest financial institutions, is reportedly in discussions to acquire a stake in InCred Finance, a tech-driven non-banking finance company (NBFC), by purchasing a portion of KKR's stake. The talks, according to sources familiar with the matter, are centered around a premium valuation to InCred's last reported valuation of $1.2 billion.

The negotiations suggest that global investment firm KKR may consider divesting approximately 10% of its stake in the Mumbai-based NBFC, although the final stake size remains subject to ongoing discussions. It is speculated that the valuation could see a significant uptick of 30-40% above the $1.2 billion mark, indicating a bullish outlook for InCred amidst preparations for a potential initial public offering (IPO) in the coming years.

Aside from Mizuho's interest, other new investors are also reportedly exploring options to acquire secondary stakes in InCred, anticipating future growth potential and positioning themselves strategically ahead of the company's anticipated IPO.

InCred Finance, which merged with KKR India Financial Services in 2022, achieved unicorn status in December 2023 following a $60 million funding round led by high net-worth individuals (HNIs). The company's diverse portfolio and robust financial performance have garnered attention, with rating agency Crisil recently upgrading its long-term rating.

As discussions progress, stakeholders eagerly anticipate the outcome of Mizuho's potential investment, which could further propel InCred Finance's growth trajectory and solidify its position as a leader in the Indian financial services industry.