KKR plans to merge India NBFC with InCred

Global private equity firm KKR plans to merge its corporate lending unit KKR India Financial Services with InCred Finance via an all-stock deal that would give it a minority stake in the combined company, sources privy to the development told Mint.

The combined entity will operate under the InCred brand name, and post the deal, the merged book size will be around $802 million with a relatively low debt-equity ratio.

“We understand that the equity injection will take the form of a merger of KKR’s wholesale NBFC with InCred’s Retail franchise. The aim appears to create a strongly tech focused Indian financial services behemoth,” a source told Mint.

KKR and InCred are believed to have entered into an exclusivity arrangement. Valuation details couldn’t be ascertained, a report said.

InCred has raised over $133 till date from a set of investors, including Investcorp, Manipal chief Ranjan Pai, Dutch government owned FMO, Moore Venture Partners, Paragon, Elevar and OAKS Asset Management amongst others.