Trucap Finance on January 12 signed a partnership with Shivalik Small Finance Bank for sourcing and managing retail gold loan assets. But the stock closed today's trading session with a 2 percent loss at Rs 64.30. It has a market capitalisation of Rs 747 crore.
With a loan book of over Rs 500 crore, TruCap aims to build social capital by providing small-ticket gold loans and business loans to MSME borrowers.
"Trucap Finance acting as business correspondent (BC) for Shivalik Small Finance Bank will originate new business and help in scaling up the customer base," the financial services company said in its BSE filing.
Shivalik has recently completed its maiden equity raise of over Rs 100 crore of equity capital from marquee investors including Accel, Quona Capital and Bharti AXA Life Insurance as it aims to become the go-to bank for small businesses and retail customers.
"Trucap can build a partnership with Shivalik Small Finance Bank over the next 3-5 years," Rohanjeet Singh Juneja, MD & CEO of Trucap Finance said.
Trucap, which has over 70 branches across seven states in India, already has a substantial co-lending partnership for MSME gold loans with Central Bank of India.
"The collaboration with Trucap will help boost the bank’s distribution reach among the small business segment, leveraging the branch network of the NBFC. Serving the needs of MSME customers in collaboration with partners like Trucap who have sourcing expertise in a specialised product segment is a core part of the bank’s growth strategy over the next few years," Anshul Swami, Managing Director and CEO of Shivalik Small Finance Bank said.
Interface Ventures, promoted by financial services veteran Karan Desai, was the sole advisor to Trucap for this partnership.