InCred Finance Expands into Gold Loan Segment
InCred Finance, the lending division of InCred Group, is making a significant move into the gold loan sector by acquiring the gold loan business of TruCap Finance Limited. This transaction, conducted as a slump sale, comprises TruCap’s extensive network of 115 branches, a clientele exceeding 40,000, and assets under management (AUM) surpassing Rs 650 crore. This acquisition is anticipated to boost InCred Finance’s growth in secured lending by as much as three years, utilising TruCap’s established operational framework and a workforce of over 550 employees. The completion of this deal is contingent upon regulatory approvals and the satisfaction of closing conditions.
Bhupinder Singh, the Founder and Group CEO of InCred, remarked that this acquisition reflects a crucial advancement in the company’s aim to establish a diversified and risk-oriented retail loan portfolio. Gold loans possess both cultural and financial importance in India, providing a secure credit alternative. With this deal, InCred will double its branch network and reinforce its retail presence.
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The newly formed gold loan division will be spearheaded by Saurabh Jhalaria, a founding member of InCred Finance who currently manages MSME and education loans. Jhalaria expressed that gold loans have historically offered quick and accessible credit solutions in India. Through the integration of TruCap’s expertise with InCred’s focus on risk management and technology, the objective is to streamline the process for customers.
Established in 2016, InCred Finance has built a varied lending portfolio that includes personal, MSME, and education loans. The company achieved unicorn status in 2023 and boasts a loan book exceeding Rs 10,000 crore. Notable investors in InCred include KKR, ADIA, TRS, OAKS, and Moore Capital.
InCred has more than doubled its profit after tax to Rs 316.35 crore in FY24 from Rs 120.92 crore in FY23, fueled by a substantial 45% rise in interest income. The company’s interest income climbed to Rs 1,193.14 crore in FY24, compared to Rs 822.82 crore in the prior fiscal year. Similarly, its operating revenue increased by 46.8%, reaching Rs 1,269.96 crore in FY24.