InCred Finance To Acquire TruCap's Gold Loan Business

Incred Finance is set to foray into gold loans through the acquisition of TruCap Finance Ltd.'s gold loan business via a slump sale for about Rs 330 crore, according to an exchange filing.

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 of over Rs 650 crore.

InCred Finance currently deals in personal loans, MSME loans, and education loans, while TruCap Finance is a listed, non-deposit-taking NBFC.

The transaction, which is subject to necessary approvals and certain adjustments, is expected to be completed by April 30, 2025.

With the sale, TruCap is trying to reduce the debt as well as boost its net worth. It will also help enhance the company's capital efficiency and substantially improve the profitability of its secured green energy finance and MSME business loans with an AUM in excess of Rs 450 crore as of Dec 31, 2024, according to the company. Post the deal, TruCap’s balance sheet leverage is projected to go below 1.5 times while its cost structure is anticipated to reduce by more than 70%, it added.

TruCap has cumulatively disbursed more than Rs 1,100 crore and served more than 100,000 borrowers since 2018, when the company began lending operations with financial inclusion at the helm. As of Dec. 31, 2024, TruCap had an active borrower base of 34,400 customers with an average ticket size of Rs 1.1 lakh in MSME business loans.

"Going forward, TruCap continues to remain committed to serving underserved and underbanked MSME customers through these products and is actively working on plans to further bolster its net worth to propel growth through its captive sales network and distribution partners," it said.

As for InCred, this strategic acquisition will provide the company with a head start in the gold loans business, accelerating its go-to-market timeline by 24-36 months.

"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," said Bhupinder Singh, founder and Group chief executive officer at InCred.

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 and Education Loans verticals.

"Gold loans have long been a reliable financial solution for millions of Indians, providing quick and convenient access to credit for short-term needs," Jhalaria said. "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 hassle-free for our customers."