TruCap Finance Limited — Updates, 25-02-2025: Press Release

TruCap Finance Limited has signed a binding term sheet with Incred Finance to sell its gold loan business for approximately ₹330 crores, subject to final adjustments. This strategic move is expected to substantially improve TruCap's financial health, projecting a reduction in balance sheet leverage to below 1.5x and decreasing its cost structure by over 70% post-transaction, anticipated by end of April 2025. With this divestment, the company aims to enhance its profitability and focus on its core segments, including secured green energy financing and MSME loans, which currently have an AUM exceeding ₹450 crores.

Since its inception in 2018, TruCap has disbursed over ₹1,100 crores, serving more than 1,00,000 borrowers, with a commitment to gender-inclusive financing, highlighted by having supported over 19,000 women borrowers. Their distribution network has expanded to over 300 partners, further bolstering outreach and engagement with underserved communities. The outlook remains positive as the company continues to focus on strengthening its financial position and expanding its lending capabilities.