TruCap Finance disburses Rs 261 crore in June quarter

TruCap Finance, a micro, small, and medium enterprises (MSMEs) focused non-banking finance company (NBFC), has disbursed Rs 261 crore in the quarter that ended June’23 as compared to Rs 237 crore in March 23 and Rs 164 crore on June 22 translating to an AUM in excess of Rs 650 crore with over 65,000 plus active borrowers.

A strategic roadmap the company adopted in August 2021 was to prioritize co-lending and BC partnerships with large lenders in Lending as a Service (L-a-a-S) to make the balance sheet capital efficient and more profitable. In L-a-a-S, TruCap has partnered with HDFC Bank, DCB Bank, Central Bank of India, Shivalik Small Finance Bank, and UGRO Capital. The share of loan-book attributed to L-a-a-S Partnerships has risen from 1% in FY’22 to over 30% in June’23.

TruCap has been investing to build a formidable distribution ecosystem by setting up Dhanvarsha branches in a cluster-based approach. The company opened 31 branches in the first quarter of this fiscal year (operating as brand Dhanvarsha – powered by TRU), including 7 new branches in Rajasthan, marking its entry in the state. This takes the total branch count to 103 branches at the end of the quarter. The company has its presence in the States of Maharashtra, Madhya Pradesh, Gujarat, Goa, Delhi NCR, Punjab, and now Rajasthan. More than 75% of its branch presence is in tier 2/tier 3/tier 4 towns.