Japan?s Mizuho Financial Group, Inc. (TSE:8411) has held talks to pick up a stake in InCred Financial Services Limited by buying a part of KKR & Co. Inc. (NYSE:KKR)?s stake in the financial services unicorn at a premium to its last valuation of $1.2 billion, multiple people aware of the discussions said. As per latest discussions, global investment firm KKR may divest around 10% stake in the Mumbai-based tech-driven non-banking finance company (NBFC), but this may change depending on how the talks progress, people briefed on the talks said.

The negotiations are being held for up to 30%- 40% premium to the $1.2 billion valuation at which InCred had raised $60 million in December 2023. This is contrary to typical secondaries happening at a lower valuation. ?This is being seen as the entry for certain investors before the IPO and the firm?s valuation is moving 30-40% higher than the last funding valuation,?

a person briefed on the matter said. ?While terms are yet to be finalised, the valuation would be higher.? Besides Mizuho, other new investors are also exploring a secondary stake buy ahead of a potential initial public offering (IPO) by InCred in the next one-two years.

?Other investors are also queuing up for a pie so nothing is imminent yet but KKR wants to divest a part of its holding in this round,? a second person aware of the talks said. InCred Founder Bhupinder Singh, a former Deutsche Bank executive, declined to comment.

A spokesperson for Mizuho also declined to comment while an email sent to KKR did not elicit any response till press time May 16, 2024.