InCred Finance on Wednesday said it will foray into gold loans through the proposed acquisition, via slump sale, of the gold loans business of TruCap Finance Ltd.
InCred Finance is a systemically important non-deposit taking NBFC registered with the RBI.TruCap is a listed, non-deposit-taking NBFC registered with the RBI.
“This proposed acquisition will bring with it a nationwide network of 115 branches, a customer base exceeding 40,000, a team of 550+ employees and an AUM of over ₹650+ crore,” InCred Finance, which has a loan book of about ₹10,000 crore, said in a statement.
The proposed acquisition is subject to the execution of long form documents, obtaining necessary approvals and the fulfilment of all conditions precedent to closing.
InCred Finance said this acquisition will provide it with a head-start in the gold loans business, accelerating its go-to-market timeline by 24-36 months.
“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,” per the statement.
Bhupinder Singh, Founder & Group CEO, InCred, commented: “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”
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.
