InCred Finance buys TruCap’s gold loan business for Rs 330 crore

InCred Finance, the new-age diversified lending arm of InCred Group, has announced the acquisition of TruCap Finance’s gold loan division in a deal worth around Rs 330 crore, aiming to strengthen its secured lending offerings and expand its footprint across India.

The sale, structured as a slump sale, includes the transfer of the “Dhanvarsha” trademarks and logos. TruCap said in a stock exchange filing that the transaction is expected to be completed by April 30, 2025.

The proposed acquisition is subject to the execution of long form documents, obtaining necessary approvals and the fulfilment of all conditions precedent to closing.

Key details of the deal  

The acquisition gives InCred Finance control over 115 gold loan branches across the country and adds a customer base of more than 40,000. It also brings on board a team of over 550 employees and assets under management of over Rs 650 crore.

The strategic acquisition will provide InCred Finance with a head-start in the gold loans business, accelerating its go-to market timeline by 24-36 months. InCred Finance will get complete access to the experienced team of TruCap along with the well-established operational framework. 

With this acquisition, InCred Finance will add another rapidly growing, scalable secured loan book to its diversified lending portfolio spread across Personal Loans, MSME Loans and Education Loans.

Impact on TruCap finance  

TruCap, which is a non-banking financial company (NBFC) providing MSME loans, electric vehicle financing and gold loans, aims to use the proceeds from this sale to reduce its debt and boost its net worth.

By exiting the gold loan segment, TruCap says it can focus more on its green energy finance and MSME business loans. It anticipates better operational and financial efficiencies, leading to stronger long-term profitability.

The Gold Loans business at InCred Finance will be led by Saurabh Jhalaria, a founding team member of InCred Finance, who also heads the MSME & Education Loans verticals.

Leadership comments

Bhupinder Singh, Founder & Group CEO, InCred, commented: “This acquisition will mark a significant step in our strategy to build a well-diversified, risk focused, retail loan book. As part of this transaction, we will double our branch network, further strengthening our retail footprint. Gold holds deep cultural and financial significance in India, serving as a trusted and accessible source of credit. Its secured nature makes it a valuable addition to our expansion strategy. I’m delighted to welcome the gold loans team from TruCap to InCred!"

Saurabh Jhalaria commented: “Gold Loans have long been a reliable financial solution for millions of Indians, providing quick and convenient access to credit for short term needs. By integrating TruCap’s expertise with InCred Finance’s strengths in risk management and technology, we are committed to making gold loans seamless, efficient, and hasslefree for our customers.”

Financial performance

Founded in 2016 by Bhupinder Singh, InCred operates three main divisions under the InCred Group: InCred Finance for lending, InCred Capital for wealth and asset management, and InCred Money for retail bonds and alternative investments.

In the 2024 fiscal year, TruCap’s gold loan division posted revenue of Rs 66.4 crore, contributing to the company’s total revenue of Rs 182 crore.

In the same period, InCred’s own operating revenue climbed to Rs 1,270 crore, up from Rs 864.6 crore in FY23, while net profit more than doubled to Rs 316.3 crore from Rs 120.9 crore.