Zerodha's Nikhil and Nithin Kamath bet ₹250 crore on InCred ahead of IPO, doubling down on India’s digital lending wave

Zerodha founders Nithin and Nikhil Kamath have acquired a ₹250 crore minority stake in InCred Holdings Ltd, the parent company of InCred Financial Services Ltd (IFSL), a tech-driven NBFC which is focussed on consumer, SME, and education lending. The move comes as InCred gears up for a potential IPO, amid growing investor interest in India’s digital lending space.

Founded in 2016 by Bhupinder Singh, InCred offers lending solutions through a data-led model that blends risk analytics with digital infrastructure. The company services a broad borrower base, particularly in underserved retail and MSME segments.

“India’s credit ecosystem is changing fast—more formal, more digital, and more accessible. InCred Group seems to get that. They have built a strong team, a technology-first approach, and a clear view of where the market is headed. Backing them is a bet on that broader shift—and the belief that responsible lending can scale without losing sight of fundamentals,” Nikhil Kamath said in a statement.

Some of Kamath brothers’ investment bets

This investment adds to a string of selective bets the duo has made across lending, fintech, and consumer sectors, reflecting a longer-term play on the formalisation of India’s financial ecosystem.

Apart from this latest investment, Nikhil Kamath launched the WTFund, which offers non-dilutive grants and mentorship to individuals under 25. Its portfolio includes solid-state hydrogen storage startup Nasadya, wearable tech firm InnerGize, robotic systems maker Armatrix, and e-commerce tool ReferRush.

Separately, Rainmatter Capital, an early-stage investment platform launched in 2016 and backed by Zerodha, supports startups across fintech, health, climate, and public-interest storytelling. The fund has backed over 120 startups to date, including Smallcase, Jupiter, Epifi, Ditto Insurance, Wint Wealth, and Tijori. Nithin Kamath has publicly said that these areas represent long-term megatrends and that Rainmatter’s objective is less about financial returns and more about building future-ready infrastructure for India.

Across these platforms, the Kamath brothers have adopted a consistent approach of backing businesses with clear sectoral theses, especially in finance, sustainability, and consumer tech, while eschewing short-term VC-style exits. Their latest stake in InCred fits that pattern.