KKR India Fin Services, InCred agree to amalgamate their lending biz

KKR India Fin Services, InCred agree to amalgamate their lending biz

KKR’s non-bank lending business KKR India Financial Services (KIFS) has signed a deal with InCred Financial Services, the retail and MSME leading business of InCred. This deal has been signed to merge both the lending firms.

Bhupinder Singh, Founder and CEO, InCred says, “Their (KKR) long-term vision and commitment to the India story fits perfectly with InCred’s objective of creating a leading financial institution that will play a meaningful role in India’s credit ecosystem."

Being established in 2016, InCred Finance, a tech-enabled lending institution that spans online and offline models across consumer, small businesses, and education lending. Likewise, KIFS, which was found in 2009, offers Indian businesses with financing solutions.

Under the terms of the agreement, InCred’s retail non-banking finance business and KIFS would be combined to form InCred Finance, which would be led by its CEO Bhupinder Singh.

A consortium consisting of Singh, as well as existing InCred investors, would own a majority stake in InCred Finance. A consortium led by KKR and comprising existing investors in KIFS would keep a significant minority stake. Thus, KKR would be the single largest investor in InCred Finance at the time of the transaction’s close and would remain a long-term strategic partner to the business.

InCred’s equity investors include former Deutsche Bank co-CEO Anshu Jain, Ranjan Pai of Manipal Group, OAKS Asset Management, Investcorp, FMO, Moore Capital and Elevar.

The transaction is not a monetization event for investors of InCred, KIFS or KKR, the two companies said. InCred Finance would be a strategic investment for KKR and will not be a portfolio company in a KKR fund. It would operate independently of KKR. The transaction is likely to close in the fourth quarter of 2021.