Incred Holdings Limited IPO

Our Material Subsidiary, InCred Financial Services Limited ("IFSL") significantly contributes towards our business and financial performance contributing 99.85%, 99.92%, 99.91%, 99.72% and 99.78%, respectively of our total revenue from operations for the nine month period ended December 31, 2025 and December 31, 2024, and years ended March 31, 2025, March 31, 2024 and March 31, 2023. Any significant reduction in its contribution to our consolidated revenue from operations could have a material adverse impact on our business, results of operations, cash flows and financial condition.

55.56%, 48.98%, 49.05%, 43.33% and 40.98% of our total assets under management ("AUM") as at December 31, 2025, December 31, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively were generated from our personal loans product portfolio. Any adverse impact in the demand of our personal loans portfolio could have a material adverse impact on our business, results of operations, cash flows and financial condition.

As at December 31, 2025, December 31, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, our Gross NPA Ratio were 2.28%, 2.05%, 2.08%, 2.14% and 2.11%, respectively while our Net NPA Ratio were 0.87%, 0.79%, 0.73%, 0.85% and 0.93%, respectively. If our borrowers do not repay their loans on time, our non-performing loans may rise, which could negatively affect our business, results of operations, cash flows, and financial condition.

Our collection efficiency for the nine month period ended December 31, 2025 and December 31, 2024, and years ended March 31, 2025, March 31, 2024 and March 31, 2023, were 98.30%, 97.70%, 97.88%, 97.18% and 98.18%, respectively. Our collection efficiency may decline due to borrower delinquencies, fraud risks, or limitations in our recovery mechanisms, which may adversely affect our business, profitability, results of operations, cash flows, and financial position.

76.43%, 75.13%, 74.28%, 67.48% and 64.80% of our total gross loans as at December 31, 2025, December 31, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively is comprised of unsecured loans, which exposes us to heightened credit risks and may increase our levels of non-performing loans and overall delinquency which may adversely affect our business, prospects, results of operations and financial condition.

35.04%, 70.75%, 69.68%, 82.33% and 69.66% of our disbursements for the nine month period ended December 31, 2025 and December 31, 2024, and years ended March 31, 2025 March 31, 2024 and March 31, 2023, respectively of our student loan portfolio is concentrated in the United States of America ("U.S."). Any regulatory announcements or policy actions in the U.S. may adversely affect demand for student loans and, consequently, our business, results of operations, cash flows, and financial condition.

Our Company, Subsidiaries, Directors, Promoter, KMPs and SMPs are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, financial condition, cash flows and results of operations.

We have witnessed negative net cash (used in) operating activities during the nine month period ended December 31, 2025 and December 31, 2024, or years ended March 31, 2025, 2024 and 2023. We may continue to witness negative cash flows (used in) operating activities going forward, which may impact our liquidity, ability to fund operations and growth, and could adversely affect our business, financial condition and results of operations.

Our Statutory Auditors and our Previous Statutory Auditors have included certain observations / modifications to the annexure to their auditors report on the audited consolidated financial statements of our Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023. There can be no assurance that such observations/modifications will not be included in our financial statements going forward which may have negative impact our reputation and financial condition.

We may enter into related party transactions in the ordinary course of our business, and we cannot assure you that such transactions will not have an adverse effect on our results of operations and financial condition.