Godrej Capital, through its subsidiary Godrej Finance Limited, has acquired the gold loan business of Kanakadurga Finance Limited, marking its first strategic acquisition.
The move forms part of the company's plan to build a diversified financial services business with ₹1 lakh crore in assets under management (AUM) and more than one million customers by 2031.
The acquisition adds a gold loan portfolio of around ₹280 crore in AUM, nearly 12,000 customers, 54 branches across Andhra Pradesh and a team of approximately 250 employees, providing Godrej Capital with a platform to expand its presence in the segment.
Manish Shah, MD & CEO, Godrej Capital, said, “The acquisition of Kanakadurga Finance's Gold Loan business marks an important milestone in Godrej Capital's journey and represents our first strategic acquisition as we continue building a larger and more diversified financial services franchise with a five-year ambition of achieving ₹1 lakh crore AUM. It also reflects our intent to scale the business thoughtfully and purposefully. As we look ahead, we will continue to strengthen our platform, expand our capabilities, and pursue opportunities that enhance our ability to create long-term value for customers, partners, and stakeholders.
Jayaprakash Narayana and Sriman Narayana, Joint MDs, Kanakadurga Finance Limited, added “We have built a strong Gold Loan business with a meaningful presence across our markets. As we focus on our core Vehicle Finance business, we have decided to transition the Gold Loan business to Godrej Finance Limited. We believe the company is well positioned to take this business to its next phase of growth, backed by a strong institutional foundation and customer-centric approach. We are confident this transition will create lasting value for our customers, employees, and all stakeholders."
The company said the transaction builds on its existing strengths in MSME lending and housing finance, while supporting its strategy to broaden its consumer lending portfolio through technology-led operations, disciplined risk management and a customer-centric approach.
