TruCap Finance (formerly Dhanvarsha Finvest Ltd) reported that its net profit in the June quarter was up multifold to ₹2 crore against ₹3.5 lakh logged in the same period last year, on the back of a sharp jump registered in lending.
Revenue increased two times to ₹26 crore (₹11 crore). The company said its disbursements were up nearly four times to ₹162 crore against ₹42 crore recorded last year. The asset under management increased three times to ₹359 crore (₹132 crore) while its active customer base was up at 45,985 (10,956).
Tru started offering loans against property and diversified into MSME business and MSME gold loans by building deep sectoral expertise in underwriting to finance cash and carry businesses such as kirana stores, small manufacturing units, medical shops, etc.
With an integrated digital platform and over 58 experiential centres across Maharashtra, Madhya Pradesh, Delhi NCR and Goa, Tru will now focus to build a stronger distribution network to help MSME businesses and consumers access credit at affordable rates.
Offering affordable financing options
Managing Director, Rohan Juneja, said after piloting multiple models with ecosystem partners, the company has arrived at offering affordable and easy financing options through MSME business and gold loans under ₹20 lakhs to enable the credit journey of millions of customers.
“In the long term, we hope to grow and address larger credit needs as they develop,” he added.
The company will offer gold finance to MSMEs through its offline branch network by retaining the brand name Dhanvarsha while the evolving credit solutions and MSME business loans would be rebranded under the Tru umbrella.
Shares of the company were trading down one per cent at ₹77 on Thursday.
August 18, 2022