Godrej Capital Acquires Kanakadurga Finance's Gold Loan Business

Godrej Capital, the financial services arm of the Godrej Group, has acquired the gold loan business of Kanakadurga Finance through its subsidiary, Godrej Finance. The acquisition is aimed at strengthening its presence in the consumer finance segment and aligns with its ambition to build a Rs 1 lakh crore assets under management (AUM) franchise.

The gold loan business of Kanakadurga Finance has Rs 280 crore AUM with nearly 12,000 customers and 54 operational branches across Andhra Pradesh. The acquisition will help Godrej Capital scale up operations in this vertical and create a more diversified lending institution.

Currently, Godrej Capital is primarily engaged in MSME lending and housing finance. The company has also established a consumer finance platform focused on long-term growth. Over the past five years, the company has built a strong foundation through investments in technology, risk management, and customer-centric operations.

The acquisition marks an important milestone in Godrej Capital's journey and represents its first strategic acquisition. According to Manish Shah, Managing Director and Chief Executive Officer, Godrej Capital, the acquisition will help the company achieve its five-year ambition of achieving Rs 1 lakh crore AUM.

The gold loans segment has been witnessing high growth in the past few months due to the increase in prices of the precious commodity and lenders' comfort with 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.

The sector has seen increased activity in recent months, with Tata Capital acquiring a majority stake in Kerala-based Yogakshemam Loans (Yogloans) and Godrej Capital launching its wealth management business. 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.

The acquisition of Kanakadurga Finance's gold loan business is a strategic move by Godrej Capital to expand its consumer finance portfolio and achieve its growth ambitions. The company's focus on building a diversified lending institution will help it to cater to the growing demand for gold loans and other financial services.

In the coming years, Godrej Capital plans to expand its wealth management business to 35 locations across the country. The company has also invested ₹370 crore in Godrej Investment, boosting its wholly-owned subsidiary's capital base.

The acquisition of Kanakadurga Finance's gold loan business is a significant development in the financial services sector and reflects the growing demand for gold loans and other financial services. Godrej Capital's expansion into the gold loan business is expected to increase competition in the sector and provide more options for customers.

In conclusion, the acquisition of Kanakadurga Finance's gold loan business by Godrej Capital is a strategic move to expand its consumer finance portfolio and achieve its growth ambitions. The company's focus on building a diversified lending institution will help it to cater to the growing demand for gold loans and other financial services.