Tata Capital is set to acquire Kerala-based gold loan financier Yogakshemam Loans in all all-cash deal. The acquisition marks the company’s foray into the gold loan business.
Yogakshemam, the operator of the brand Yogloans, is promoted by former Manappuram Finance official Unnikrishnan Idicharm Veetil.
According to the terms of the agreement, Tata Capital will acquire a near 89% stake in the gold loan company at a pre-money equity value of Rs 318 crore (around $33 million). Tata Capital will become the parent of Yogloans, and the former will infuse Rs 93 crore in the latter, the company said in an exchange filing.
Established in 1991, Yogloans operates through a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, with an asset under management (AUM) of Rs 708 crore as of March 31. The company serves around 32,000 gold loan customers and has built strong capabilities in sourcing, underwriting and servicing over more than a decade in the gold loan business.
Following the acquisition, Unnikrishnan will continue to lead Yogloans, the filing said. The proposed transaction is subject to receipt of requisite regulatory approvals and satisfaction of customary closing conditions. The timeline for the completion of the acquisition is estimated to be eight months.
Yogloans’ turnover rose to Rs 140 crore in the financial year ended March 2026, from nearly Rs 130 crore a year ago.
“This transaction marks Tata Capital's entry into the gold loan business, adding a secured lending product with significant growth potential to our retail lending portfolio and supporting our strategy of building a diversified lending franchise," Rajiv Sabharwal, managing director and chief executive officer, Tata Capital said in the filing.
“We believe the combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities will accelerate growth and create an enhanced experience for customers,” he added.
Tata Capital is the flagship financial services company of the Tata Group and a subsidiary of Tata Sons. The non-bank lender is categorised as an Upper Layer NBFC under the RBI’s scale based regulatory framework.
The company offers over 25 lending products, catering to salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises, and corporates. In addition to its lending offerings, Tata Capital also distributes third-party products such as insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager to private equity funds.
Tata Capital’s distribution network spans 1,477 branches across 27 states and union territories. Its net asset under management stands at Rs 2.8 trillion as on March 31.
