InCred Finance acquires TruCap’s gold loan business to expand secured lending portfolio
The transaction, executed as a slump sale, includes TruCap’s 115-branch network, a customer base of over 40,000, and assets under management (AUM) exceeding Rs 650 crore.
InCred Finance, the lending arm of InCred Group, is entering the gold loan segment by acquiring TruCap Finance Limited’s gold loan business.
The transaction, executed as a slump sale, includes TruCap’s 115-branch network, a customer base of over 40,000, and assets under management (AUM) exceeding Rs 650 crore.
The acquisition is expected to accelerate InCred Finance’s expansion into secured lending by up to three years, leveraging TruCap’s operational framework and workforce of over 550 employees. The deal is subject to regulatory approvals and the fulfilment of closing conditions.
“This acquisition is a significant step in our strategy to build a diversified and risk-focused retail loan book,” said Bhupinder Singh, Founder and Group CEO of InCred. “Gold loans hold cultural and financial significance in India, offering a secure credit option. With this transaction, we will double our branch network and strengthen our retail presence.”
The newly integrated gold loan business will be led by Saurabh Jhalaria, a founding team member of InCred Finance who also oversees MSME and education loans. “Gold loans have long provided quick and accessible credit solutions in India,” Jhalaria stated. “By combining TruCap’s expertise with InCred’s risk management and technology, we aim to make the process seamless for customers.”
Founded in 2016, InCred Finance has built a diversified lending portfolio spanning personal, MSME, and education loans. The company became a unicorn in 2023 and has a loan book exceeding Rs 10,000 crore. Investors in InCred include KKR, ADIA, TRS, OAKS, and Moore Capital.
InCred more than doubled its profit after tax to Rs 316.35 crore in FY24 from Rs 120.92 crore in FY23, driven by a robust 45% increase in interest income.
The company’s interest income reached Rs 1,193.14 crore in FY24 compared with Rs 822.82 crore in the previous fiscal year. Correspondingly, its operating revenue grew by 46.8%, amounting to Rs 1,269.96 crore in FY24.
Edited by Jyoti Narayan