Fintech unicorn InCred Financial Services has marked a remarkable financial performance in the fiscal year 2022-23 (FY23), reporting a quadruple increase in net profit to INR 120.9 Cr from INR 30.8 Cr in the previous fiscal year. The significant boost in profit can be attributed to a sharp rise in interest income, fees, and commission income, positioning InCred as a dominant player in the financial services sector.
Key Highlights:
- Profit Quadrupled: InCred’s net profit skyrocketed, reaching INR 120.9 Cr in FY23, showcasing a remarkable fourfold increase from INR 30.8 Cr in FY22.
- Operating Revenue Surge: The fintech unicorn reported an impressive 77% surge in operating revenue, amounting to INR 864.6 Cr in FY23 compared to INR 488 Cr in the previous fiscal year.
- Diverse Business Verticals: InCred operates through three distinct entities – InCred Finance (lending vertical), InCred Capital (wealth and asset management), and InCred Money (retail bonds and alternative investments platform).
Strategic Acquisitions and Expansion:
- Orowealth Acquisition: InCred made a strategic move in January 2023 by acquiring wealthtech startup Orowealth, paving the way for the launch of its retail-focused wealthtech platform ‘InCred Money.’
- Series D Funding: InCred achieved unicorn status in December 2023, securing $60 Mn (INR 500 Cr) in its Series D funding round led by Manipal Education and Medical Group’s Ranjan Pai.
Revenue Breakdown:
- Interest Income Dominance: Interest income contributed significantly to revenue, amounting to INR 822.8 Cr, marking a substantial 74% YoY increase.
- Fees and Commission Income: This category doubled YoY, reaching INR 20.9 Cr in FY23, showcasing the diversified revenue streams of InCred.
- Total Revenue Inclusion: Including other income like marketing fees and business support charges, the total revenue expanded to INR 877.4 Cr in FY23 from INR 524.3 Cr in FY22.
Expense Analysis:
- Finance Costs: InCred’s spending in finance costs surged by 62.1%, reaching INR 355.8 Cr in FY23 from INR 219.5 Cr in FY22.
- Employee Costs: Expenditure towards employee benefits rose by 37.7%, totaling INR 191.7 Cr in FY23, reflecting growth in the workforce and ESOP expenses.
- IT Expenses: InCred’s spending in IT expenses witnessed a notable 29% YoY increase, reaching INR 17.5 Cr in FY23.
- Depreciation, Amortisation, and Impairment: The startup allocated INR 12.8 Cr in this category during FY23.
InCred’s remarkable financial performance solidifies its position as a key player in the fintech space, showcasing both growth and strategic prowess.
