Private equity firm KKR is looking to merge its wholesale non-bank lending business with Mumbai-based InCred’s retail franchise and will invest in InCred as part of the deal, two people aware of the matter said.
The combined entity will operate under the InCred brand name, and after the deal, the merged loan book size is expected to be around ₹6,000 crore.
KKR and InCred have signed an exclusivity agreement to execute the deal.
Along with this investment, KKR, along with other limited partners, is expected to pick up a large minority stake in InCred, and will become the largest investor bloc backing InCred, the people cited above said on the condition of anonymity.
A KKR spokesperson confirmed the investment.
Mint couldn’t ascertain the quantum of the investment to be made or the valuation of the combined entity. After the investment, KKR India Financial Services Ltd, along with other marquee investors, including Abu Dhabi Investment Authority (ADIA) and Texas Teacher Retirement System, will join InCred’s equity roster, and will get a seat on the board.
With its investment in InCred, KKR is doubling down on its bet in the Indian financial services space. In May, KKR had also invested ₹11,367 crore in Jio Platforms for a 2.32% stake in the company.
