Fintech unicorn InCred's profit climbs over 250% to Rs 109 crore in FY23

InCred Finance, a fintech unicorn, has reported a substantial increase in its financial performance for the fiscal year 2023. The startup's net profit soared to Rs 121 crore, a significant leap from Rs 31 crore in the previous fiscal year. 

The growth is attributed to a 67% jump in total revenues, reaching Rs 877.5 crore, up from Rs 488 crore in FY22.

What led the surge in financial growth?

The impressive growth in InCred's revenue and profits can be linked to its diverse loan offerings, including consumer, student, and small business loans. The company's interest income, which forms 95% of its total operating revenue, saw a 74% increase to Rs 823 crore in FY23.

Additionally, InCred's finance costs rose by 62.6% to Rs 356 crore, reflecting its expanded operations.

Expansion and investment

InCred's journey to becoming a unicorn was marked by a significant $60 million fundraising in its Series D round, valuing the company at over $1.03 billion. The funding, led by InCred Wealth and supported by various investors, will fuel the growth of its core business verticals. 

InCred's strategic partnership with Zomato in 2022 for credit facilities and its plans to enter the insurance business further highlight its expansion strategy.

Operational and financial efficiency

The company's operational efficiency is evident in its reduced cost-to-income ratio, spending only Rs 0.73 to earn a rupee in FY23. Its Return on Capital Employed (ROCE) and EBITDA margin improved to 10% and 30%, respectively. InCred's total costs, including employee benefits and IT expenses, increased by 30.7% to Rs 630 crore in FY23.

InCred Finance, founded in 2016 by Bhupinder Singh, has demonstrated a compound annual growth rate of over 50% in the past three years. With a loan book of Rs 7,500 crore developed over six years, the startup is well-positioned for future growth. Its profit before tax of Rs 170 crore in H1 FY24 indicates a strong start to the next fiscal year.

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