Incred Finance, the lending arm of the InCred group, is acquiring the gold loan business of TruCap Finance Ltd (TruCap) for a consideration of ₹330 crore.

TruCap said in a regulatory filing that the proposed acquisition is subject to the execution of long-form documents, obtaining necessary approvals and the fulfilment of all conditions precedent to closing.

The strategic acquisition is expected to provide InCred Finance with a head-start in the gold loans business, accelerating its go-to-market timeline by 24-36 months. InCred Finance will get complete access to the TruCap team, along with the well established operational framework.

For InCred Finance, the acquisition is forecast to add another rapidly growing, scalable secured loan book to its diversified lending portfolio spread across personal, MSME and education loans.

TruCap added that following the transaction, its cost structure is anticipated to reduce by more than 70 per cent.

“This transaction will not just augment net-worth, reduce debt, and enhance capital efficiency but substantially improve profitability in the focused products — secured green energy finance and MSME business loans —with an assets under management (AUM) in excess of ₹450 crore as of December 31, 2024,’’ it said.

TruCap, which began its lending operations in 2018 with financial inclusion at the core, has cumulatively disbursed more than ₹1,100 crore and served more than 1,00,000 borrowers across various product lines.

As of December 31, 2024, it had an active borrower base of 34,400 customers with an average ticket size of ₹1.1 lakh in MSME business loans including green energy financing.

The company also has an active base of more than 7,500 women borrowers and it has served over 19,000 women borrowers cumulatively over the last five years.

Shares of TruCap Finance settled 4 per cent higher at ₹10.65 on the BSE on Tuesday.