### **Overview** TruCap Finance Ltd. (formerly Dhanvarsha Finvest Limited) is a rapidly growing, RBI-registered non-deposit-taking NBFC listed on both BSE and NSE. Headquartered in Mumbai, the company has rebranded to reflect its strategic focus on trust, technology, and accessible credit for India’s underserved MSMEs. The Dhanvarsha brand continues to be used for retail branch operations, particularly in the gold loan segment, while TruCap represents its core MSME-focused lending and Lending-as-a-Service (LaaS) platforms. With a mission to empower nano-entrepreneurs and micro-businesses, TruCap combines physical presence with digital innovation to deliver fast, transparent, and sustainable credit solutions. It is positioned at the intersection of financial inclusion, MSME development, and green finance, particularly in Tier II, III, and IV towns — regions critical to India’s economic expansion. --- ### **Geographic Presence & Distribution Network** - **Branch & Experiential Center Network:** As of **September 2025**, TruCap operates **122 branches** across **eight Indian states** — Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Goa, Delhi-NCR, Punjab, and Haryana. - Over **85% of branches** are located in **Tier II, III, and IV cities**, targeting MSME-dense, semi-urban, and rural markets. - Approximately **67% of branches** lie in high MSME-concentration zones that account for **35% of India’s total MSME units**. - The company maintains **117 experiential centers** (as of May 2025), functioning as multi-product distribution hubs. - **Expansion Strategy:** - The network has grown from 79 branches in March 2023 to over 120 in early 2024, entering new states including Rajasthan and Punjab. - Growth is driven by a **cluster-based approach**, focusing on MSME hubs with strong linkages to surrounding villages. - Expansion is now shifting from aggressive branch addition to **enhancing productivity and efficiency** in existing locations. - **Distribution Partnerships:** - TruCap leverages a **phygital (physical + digital)** distribution model, combining branch outreach with a broad partner ecosystem. - It collaborates with over **300 direct selling agents (DSAs)** and **100+ channel partners**. - The **DhanSetu Channel Partner App** enables partner-led customer acquisition and loan tracking. --- ### **Core Business Segments & Products** TruCap specializes in **MSME-focused credit**, **gold-secured lending**, and emerging **green energy finance**, targeting underserved micro and small enterprises. | **Product** | **Loan Range** | **Tenure** | **Avg Ticket Size** | **Interest Rate** | **Key Features** | |---------------------------|------------------------|------------------|---------------------|--------------------|------------------| | **MSME Business Loans** | ₹0.1–5 million | 12–36 months | ₹0.1 million | 15–22% | Cash flow underwriting; essential commodities focus (pharma, FMCG, kirana) | | **Gold-Backed Loans** | ₹0.1–5 million | 12 months | ₹0.1 million | 15–21% | 22K gold purity; 60–75% LTV; disbursement in <30 mins | | **Green Energy Finance** | Up to ₹0.2 million | Up to 24 months | ₹0.12 million | 16–20% | E-3W financing for self-employed; off-grid solar support | | **Personal/Other Loans** | ₹0.1–2 million | 12–48 months | ₹0.15 million | 18–24% | Run-off mode; includes Dhan Aarogya (medical), Dhan Ghar (home), Dhan Sukh (debt consolidation) | | **Loan Against Property** | ₹30–31 lakhs (historical) | 12–60 months | – | – | Being phased out; <1% of AUM as of FY24 | --- ### **Strategic Growth Drivers** #### 1. **Lending-as-a-Service (LaaS) / Co-Lending Model** - A **core strategic pillar**, enabling **capital-efficient growth** with higher returns. - TruCap acts as a **minority capital provider (5–20%)**, managing the entire lending lifecycle — sourcing, servicing, and collections — while partnering with **major financial institutions** for 80–95% of the funding. - **LaaS Partners:** HDFC Bank, DCB Bank, Central Bank of India, SIDBI, Shivalik Small Finance Bank. - **AUM Contribution (Sep 2025):** - Off-balance-sheet AUM accounts for **~43–50% of total AUM**. - Cumulative disbursements via LaaS exceed **₹20,637 million**. - The model improves **internal rate of return (IRR)**, enhances capital efficiency, and allows TruCap to serve underbanked MSMEs at scale. #### 2. **Technology-Enabled Lending Platform** - **Centralized Tech Infrastructure:** Modular, microservices-based architecture with open APIs for integration. - **Automated Decisioning:** Proprietary **Business Rules Engines (BREs)** automate underwriting using data from: - Credit bureau (CIBIL) - Bank statements - GST records - Alternative data (bills, mobile footprint) - **Loan Origination & Management System (LOMS):** Enables **in-principal approvals within minutes** and real-time monitoring. - **TRUSS Portal:** A data-driven platform for automation, reporting, and performance tracking. #### 3. **Green Lending Initiative** - **Electric 3-Wheeler (e3W) Financing:** - TruCap finances e3Ws for self-employed individuals in Tier II and III cities. - Disbursements of ~₹7.5 crore recorded as of **June 2024**. - **Future Plans:** Expand through **EV ecosystem partnerships** (OEMs, battery suppliers, aggregators) to offer affordable, tailored green financing. - Aligns with **India’s net-zero and clean mobility goals**. --- ### **Financial Performance & Metrics (Latest as of FY24 / Sep 2024)** - **Assets Under Management (AUM):** - **₹1,031 crore (FY24)** — up **77% YoY**. - Composition: **65% gold loans**, **34% MSME business loans**, **1% other (run-off)**. - **Loan Disbursements:** - Grew to **162,000 in FY24** from 53,000 in FY22. - Average of **563 loans per working day** as of March 2024. - **Cumulative Disbursements:** Over **₹4,700 crore** in six years. - **Active Customer Base:** **98,400+** (Sep 2024). - **Gross NPAs:** - Overall portfolio: **1.32% as of Mar 2024** (down from 2.2% in FY23). - Gold loan portfolio: **12 bps** (near-zero defaults). - **Revenue:** ₹161.1 crore in FY24 (**+30.1% YoY**). - **Profitability Target:** Increase **Net Interest Margin (NIM)** from <5% to **7.5–8%**, driven by liability cost optimization. --- ### **Risk Management & Governance** - **Credit Function:** Led by a **banking veteran with 32+ years of experience**; robust, conservative underwriting framework. - **Collections:** Managed in-house by a **BFSI professional with 30+ years of experience** (ex-Bajaj Finance, GE Capital). - Hybrid model: field agents (“feet on street”) + tech-enabled tracking. - Collection efficiency averages **>95%**. - **Governance:** - Independent board and strong promoter governance. - MD & CEO — **Mr. Rohan Juneja**, with 17 years in investment banking and fund management. --- ### **Challenges** - **Low National Brand Recognition:** Despite strong regional presence, national awareness remains limited. - **Higher Cost of Borrowing:** Due to **lower credit ratings**, TruCap faces elevated cost of funds. - **External Credit Rating Delay:** Despite profitable growth, upgrades have been slower than anticipated. - **Non-Digital-Only Model:** In-person verification required, which may limit scalability compared to pure digital lenders. --- ### **Funding & Investor Support** - **Strategic Investment:** Acquired funding from **MCG Group** (INR 25 billion net worth) in May 2025. - **Development Finance:** Partnered with **responsAbility Investments AG** (DFI) to diversify funding and support sustainability goals. - **Strong Promoter Backing:** Backed by the **80-year-old Wilson Group**, ensuring long-term capital support and governance stability. --- ### **Sustainability & Social Impact** - Focuses on serving **first-time borrowers**, **women entrepreneurs**, and **marginalized communities**. - Over **20% of branches are women-led** and staffed. - Recovered **109%+ of principal + interest** on auctioned gold, returning excess to borrowers. - Over **2.5 lakh nano-entrepreneurs** served cumulatively. ---