Mumbai, Godrej Capital, the financial services arm of the Godrej Group, on Wednesday announced the acquisition of the gold loan business of Kanakadurga Finance through its subsidiary Godrej Finance for an undisclosed sum.
The maiden acquisition by the company is aimed at strengthening its presence in the consumer finance segment, according to an official statement.
The company said the acquisition aligns with its ambition to build a Rs 1 lakh crore assets under management (AUM) franchise and serve more than one million customers by 2031.
Kanakadurga Finance's gold loan business has Rs 280 crore AUM with nearly 12,000 customers, 54 operational branches across Andhra Pradesh and an experienced team of around 250 employees, which will help Godrej Capital scale up operations in this vertical.
Currently, the company is primarily engaged in MSME lending and housing finance. It has also established a consumer finance platform focused on long-term growth.
The company said it has built a strong foundation over the past five years through investments in technology, risk management and customer-centric operations and the acquisition will help create a more diversified lending institution.
"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 Rs 1 lakh crore AUM," Manish Shah, managing director and chief executive officer, Godrej Capital, said.
The gold loans segment has been witnessing very high growth in the past few months amid the increase in prices of the precious commodity and also lenders' comfort because of the secured nature of the product.
Outstanding loans against gold jewellery stood at Rs 3.29 lakh crore at the end of May 2026, up 69.9 per cent from Rs 1.94 lakh crore a year earlier.
This has led to jostling among financiers to enter the fray, with new operations and acquisitions of existing entities.
On July 13, Tata Capital acquired a majority stake in Kerala-based Yogakshemam Loans (Yogloans), marking the Tata Group financial services company's entry into the gold loan business.
In June, Godrej Capital had launched its wealth management business and set a target of Rs 1 lakh crore over the next five years. The wealth management business will initially focus on eight key cities before expanding to 35 locations over the next three years.
Last month, Shah told PTI that Godrej Capital is targeting assets under management (AUM) of Rs 38,000 crore by the end of the current financial year and plans to take the business public in the next five years.
