Fintech unicorn InCred Finance crosses Rs 8,000 Cr AUM on the back of personal loans

InCred Financial Services Ltd's loan book grew 55% year over year (YoY) to reach Rs 8,013 crore till December 2023. Gross disbursements for this period reached Rs 6,583 crore.

Announcing its Q3 FY24 results, the fintech company said the growth in assets under management (AUM) was evenly distributed across all segments, including consumer loans, education loans, and SME lending. While personal loans accounted for 45% of all lending, with the average ticket size being Rs 96,000, the share of student loans was 22%, with an average loan size of Rs 33 lakh.

While the company didn't reveal its net profits, its profit before tax grew 131% to Rs 298 crore in April-December 2023, compared with Rs 129 crore earned in the same period a year ago.

Incred's total income for the first nine months of FY24 was Rs 929 crore, while expenses incurred—employee benefits, depreciation, and other costs—were Rs 275 crore for the period.

The fintech's cost-to-income ratio, which measures how efficiently a business is functioning, reduced from 56% to 44%.

"The growth in our profitability is a testament to our ‘risk first’ ethos, our best-in-class product delivery, and the commitment of our 1,600+ InCredibles spread across the country. We truly believe in fulfilling the financial aspirations of every Indian household and remain focused on strengthening our position even further in 2024 to better serve our customers,” said Bhupinder Singh, Founder and Group CEO, InCred. 

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InCred Financial Services Limited, the lending arm of InCred Group, was established in 2016 by former Deutsche Bank executive Bhupinder Singh as a tech-and risk-analytics-based lending platform.