Neo Wealth Partners has acquired a 9.9% stake in Keertana Finserv for ₹230 crore, valuing the company at 2.3 times its net worth of ₹920 crore. According to reports from The Economic Times, the investment was made through 16 million compulsorily convertible preference shares (CCPS) with a face value of ₹10 each, issued at a premium. Keertana approved the proposal to issue the CCPS through private placement at an extraordinary general meeting on Wednesday. The investment comes amid rapid growth in India's gold loan market, which is drawing fresh strategic interest from institutional players.
Following the transaction, Keertana founder and managing director Padmaja Reddy's holding will fall to 89.6%, with the balance held by employees. As reported by The Economic Times, Reddy stated that the deal represents their first external equity infusion and will significantly strengthen Keertana's capital base to support its next phase of expansion across the gold loan business. She noted that the attention the gold loan sector is receiving from investors should augur well for sustained growth. The investment underscores the institutional interest for collateral-backed lending platforms in India.
Since starting operations in April 2022, Keertana has built a ₹4,500 crore portfolio in about four years, reflecting strong demand for loans against gold jewellery. According to The Economic Times, the company is targeting portfolio expansion to ₹6,000 crore by March 2027. The gold loan market expanded 50.4% year-on-year to ₹18.6 lakh crore at the end of March, as reported by credit information company CRIF High Mark.
The investment comes amid significant consolidation in the gold loan sector, with Bain Capital recently completing its acquisition of a controlling stake in Manappuram Finance. As reported by The Economic Times, non-banking financial companies including Tata Capital and Godrej Capital entered the gold loan market last month through acquisitions. Tata Capital is set to acquire an 88.6% stake in Kerala-based Yogakshemam Loans, while Godrej Capital purchased the gold loan business of Vijayawada-based Kanakadurga Finance.
ICRA has projected the gold loan market to grow at a compound annual growth rate of more than 30% between 2026-27 and 2027-28, crossing ₹30 lakh crore by March 2028. According to The Economic Times, the ratings company attributed this growth momentum to the entry of new players and large NBFCs into the gold loan space, either organically or through acquisitions, along with their expansion plans. The institutional interest in collateral-backed lending platforms reflects the sector's promising trajectory ahead, with the outlook for the Indian gold loan market indicating a promising trajectory ahead.
