Neo Wealth buys a 9.9% stake in Keertana Finserv

Kolkata: Neo Wealth Partners has acquired a 9.9% stake in Keertana Finserv, a fast-growing gold loan lender promoted by microfinance veteran Padmaja Reddy. The investment comes amid rapid growth in India’s gold loan market, which is drawing fresh strategic interest.

Neo Wealth Partners, set up by former Edelweiss Financial chief executive officer Nitin Jain, has invested Rs 230 crore for the stake, valuing Keertana at 2.3 times its net worth of Rs 920 crore, underscoring the institutional interest for collateral-backed lending platforms in India.

"The deal with Neo Wealth Partners is our first external equity infusion. The investment will significantly strengthen Keertana’s capital base and support its next phase of expansion across its gold loan business," Keertana founder and managing director Padmaja Reddy told ET.


Following the transaction, Reddy’s holding will fall to 89.6%. The balance is held by employees.

"The attention the gold loan sector is getting from investors should augur well for a sustained growth," she said.

US-based private investment firm Bain Capital has recently completed its acquisition of a controlling stake in Manappuram Finance, one of the leading gold loan companies in the country. Non-banking financial companies such as Tata Capital and Godrej Capital also 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 has purchased the gold loan business of Vijayawada-based Kanakadurga Finance.

Since starting in April 2022, Keertana has built a Rs 4,500 crore portfolio in about four years, reflecting demand for loans against gold jewellery.

Neo Wealth Partners invested in 16 million compulsorily convertible preference shares (CCPS), with a face value of Rs 10 each, issued at a premium, people aware of the matter said. Keertana approved the proposal to issue the CCPS through private placement at an extraordinary general meeting on Wednesday.

Keertana aims to grow its portfolio to Rs 6,000 crore by March 2027.

The gold loan market expanded 50.4% year-on-year to Rs 18.6 lakh crore at the end of March, according to credit information company CRIF High Mark.

ICRA has projected the market to grow at a compound annual growth rate of more than 30% between 2026-27 and 2027-28, crossing Rs 30 lakh crore by March 2028.

The ratings company said the entry of new players and large NBFCs into the gold loan space, either organically or through acquisitions, along with their expansion plans, will support growth momentum.