Acquisition · Financial Services

InCred Finance buys TruCap's gold loan business

By Startup Enthusiast · 17 February 2025

What they do

InCred Finance is a non-banking financial company (NBFC) offering personal, MSME, and education loans

It acquires TruCap Finance's gold loan division via slump sale for about ₹330 crore, including 115 branches and 40,000 customers

The deal helps InCred expand into secured lending as RBI tightens rules on unsecured loans

InCred Finance is acquiring TruCap Finance's gold loan business through a slump sale (transfer of a business as a going concern for a lump sum price).
The deal value is approximately ₹330 crore, subject to adjustments.
The acquisition includes the 'Dhanvarsha' brand name and trademarks.
InCred will take over 115 branches, 40,000+ customers, and 550+ employees.
The acquired gold loan portfolio has an AUM (assets under management) of over ₹650 crore.
The deal is expected to close by April 30, 2025, pending regulatory approvals.

The RBI (Reserve Bank of India) is tightening scrutiny on unsecured lending, prompting lenders to expand into secured loan products like gold loans.
InCred's loan book already exceeds ₹10,000 crore, and this acquisition strengthens its secured lending vertical.
TruCap will use the sale proceeds to reduce debt, boost net worth, and focus on green energy finance and MSME loans.

InCred Finance offers personal loans, MSME loans, and education loans.
The gold loan business at InCred is led by Saurabh Jhalaria, who also heads MSME and education loan verticals.
InCred operates three verticals: InCred Finance (lending), InCred Capital (wealth & asset management), and InCred Money (digital investment distribution).
InCred Group also includes InCred Premier (investment platform) and InCred Alternative Investments.
InCred Global Wealth (Dubai, Singapore, London) will manage over $2 billion in assets after acquiring Arrow Capital in February 2025.
InCred's FY24 operating revenue was ₹1,270 crore (up from ₹864.6 crore in FY23), with net profit of ₹316.3 crore (up from ₹120.9 crore).

InCred will integrate the gold loan business under its existing lending vertical.
TruCap will use the proceeds to reduce debt and focus on green energy finance and MSME loans.

Product: Personal loans, education loans, secured business loans, MSME financing, and lending solutions for financial institutions
Customers: Retail customers seeking personal financing, students, small and medium enterprises, financial institutions
How it makes money: NBFC lending model with subscription-based credit products and debt financing from institutional investors