InCred Finance To Acquire TruCap’s Gold Loan Business For INR 330 Cr

In a strategic move to diversify its secured lending offerings, InCred Finance is acquiring TruCap Finance’s gold loan division. The acquisition, to be executed via a slump sale, will also include the transfer of the ‘Dhanvarsha’ trademarks and associated logos.

In an exchange filing, TruCap said that the total value of the deal will be about INR 330 Cr  and is “subject to certain adjustments”. The sale will be completed by April 30, 2025.

The deal will include a nationwide network of 115 branches, a customer base exceeding 40,000, a team of over 550 employees, and assets under management (AUM) of over INR 650 Cr. 

TruCap is an NBFC that provides MSME business loans and electric vehicle financing, besides gold loans. With the sale, TruCap is trying to reduce the debt as well as boost its net worth. 

“With the gold business being exited by the company, the company will be able to focus on scaling up its green energy finance and MSME business loans for income generation purposes with better operational and financial efficiencies thereby increasing the profits of the company, ensuring long-term sustainability,” the filing added. 

The gold loan division, post the acquisition, will be led by Saurabh Jhalaria – founding team member of InCred Finance and current head of the MSME and Education Loans verticals. 

With this acquisition, InCred Finance is eyeing to diversify its lending portfolio, which currently includes personal loans, MSME loans, and education loans. 

“… As part of this transaction, we will double our branch network, further strengthening our retail footprint,” Bhupinder Singh, founder & group CEO of InCred, said in a statement.

In the financial year ended March 2024 (FY24), the revenue of TruCap’s gold loan business stood at INR 66.4 Cr. The company posted a total revenue of INR 182 Cr for the year. 

Meanwhile, InCred’s operating revenue stood at INR 1,270 Cr in FY24 as against INR 864.6 Cr in FY23. It posted a net profit of INR 316.3 Cr as against INR 120.9 Cr in FY23. 

Founded in 2016 by Singh, InCred operates in the BFSI sector through three separate entities – lending vertical InCred Finance, wealth and asset management vertical InCred Capital, and retail bonds and alternative investments platform InCred Money. 

In 2022, InCred Finance merged with KKR India Financial Services. InCred Finance entered the unicorn club in 2023 and now claims to manage a loan book exceeding INR 10,000 Cr.

The latest development comes days after InCred acquired Dubai-based financial and investment advisory firm Arrow Capital (DIFC) to expand its operations in the Middle East and Africa regions.

The fintech unicorn is eyeing a public listing and is mulling raising INR 4,000 Cr (about $470 Mn) to INR 5,000 Cr (about $590 Mn) via its initial public offering (IPO).