India’s InCred Alternative Investments, which recently closed its maiden private equity (PE) fund, is betting big on large, established companies – but at valuations that come at a discount to public market multiples.
“Until around September last year, many companies were heading straight to IPOs [public markets] to capitalise on buoyant public market valuations. But that path isn’t always straightforward,” Vivek Singla, Managing Partner & CIO (Private Equity) at InCred Alternative Investments, told DealStreetAsia in an interview.
What does that mean? “For well-funded companies that already have multiple investors on board, there’s a natural pressure to provide exits. And that’s exactly where PE capital comes in – as a strategic bridge,” explained Singla.
He added that InCred Alternative has held active discussions with two large, well-scaled businesses in the past – each valued at over $1 billion.
“Both were IPO-bound but ultimately chose to stall or delay their public listing and raise capital privately instead,” he said, thereby citing the example of Manjushree Technopack, where the firm clocked an investment, alongside Hong Kong-headquartered PE firm PAG, late last year.
The rigid plastic packaging solution provider shelved its IPO plans in November 2024 and instead opted to raise capital from PE majors.
Launched in late 2023, InCred Alternative made its first close at Rs 330 crore in May 2024 and the final close at over Rs 575 crore, above its initial target of Rs 500 crore, earlier this year. It counts companies like Purplle [online beauty products retailer], Niva Bupa [health insurance firm], and Shadowfax [logistics and delivery company], besides Manjushree Technopack [packaging company], among its portfolio firms. Of these, Niva Bupa has already been listed since November 2024.
Founded by Bhupinder Singh in 2016, InCred Group operates three distinct businesses: the unicorn InCred Finance, which is an NBFC; InCred Capital, an institutional, wealth management, and asset management platform; and InCred Money, the retail wealth-tech investment distribution vertical.
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