TruCap Finance Limited (TruCap) has signed a binding term sheet with InCred Finance, the lending arm of InCred Group, to sell its gold loan business for approximately INR 330 crores. The transaction, structured as a slump sale, is subject to regulatory approvals, execution of long-form documents, and other closing conditions. Completion is expected by April 2025.
The sale marks a strategic shift for TruCap, significantly reducing debt and enhancing capital efficiency, while reinforcing its focus on Green Energy Finance and MSME business loans. Following the transaction, TruCap’s balance sheet leverage is projected to drop below 1.5x, and its cost structure is expected to decline by over 70%, substantially improving profitability.
Strengthening Core Business and Capital Structure
Since launching lending operations in 2018, TruCap has been committed to financial inclusion, disbursing over INR 1,100 crores and serving more than 1,00,000 borrowers. As of December 31, 2024, the company had an active borrower base of approximately 34,400, with an average loan size of INR 1.1 lakh in MSME and Green Energy financing.
By offloading its gold loan portfolio, TruCap aims to redirect resources toward its core business segments, which already boast an assets under management (AUM) exceeding INR 450 crores. The transaction will enable the company to fortify its net worth and pursue aggressive growth through its captive sales network and distribution partnerships.
Commitment to Underserved MSME and Women Borrowers
TruCap remains dedicated to serving underserved and underbanked MSME customers. The company has actively supported women entrepreneurs, with more than 19,000 women borrowers cumulatively served over the last five years, and currently maintains a base of 7,500 active women borrowers.
Over 30 lenders have supported TruCap’s MSME and Green Energy finance business, reinforcing its credibility and growth potential in these high-impact sectors.
Key Metrics of MSME & Green Energy Finance Business
- Cumulative Disbursements: Over INR 1,100 crores
- Total Borrowers Served: Over 1,00,000
- Women Borrowers: Over 19,000, underscoring TruCap’s commitment to gender-inclusive financing
With a restructured balance sheet, reduced leverage, and a sharper strategic focus, TruCap is well-positioned to scale its operations and drive sustainable growth in India’s MSME and renewable energy financing sectors.