Godrej Capital, the financial services arm of the Godrej Industries Group, is set to acquire the gold loan business of Kanakadurga Finance, marking its entry into the segment through its first strategic acquisition.
According to the business transfer agreement, Godrej Capital will pay Rs 117.5 crore ($12.1 million), with an additional Rs 17.5 crore on the fulfilment of certain conditions, according to an exchange filing. The acquisition is expected to be completed by September 30.
Broadly, the acquisition will add a gold loan portfolio of around Rs 280 crore, nearly 12,000 customers, 54 operational branches across Andhra Pradesh, and a team of around 250 employees. Godrej Capital said the move aligns with its long-term ambition to build a Rs 1-trillion financial services franchise serving over one million customers by 2031.
“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,” said Manish Shah, managing director and chief executive officer of Godrej Capital.
“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,” he added.
Godrej Capital, the holding company for Godrej Housing Finance and Godrej Finance, provides home loans, business loans, loans against property, and professional loans. Its assets under management rose 65% year-on-year to Rs 27,867 crore as of March 31, 2026.
Vijayawada-headquartered Kanakadurga Finance primarily finances used commercial vehicles in semi-urban and rural geographies, and also offers gold loans. The company is promoted by Sandireddy Lakshmi Narayana, while its day-to-day operations are managed by his sons, Jayaprakash Narayana Chowdary and S Sriman Narayana.
The deal comes as lenders increasingly look to enter the gold loan segment. Earlier this month, Tata Capital acquired Kerala-headquartered Yogakshemam Loans to enter the gold loan business.
