Indel Money Ltd, a non-banking finance company primarily focussing on the gold loan space, plans to have a strong pan-India presence by the next fiscal and will enter new regions in the next 2-3 quarters.

The Kerala-based company, which has launched a ₹200-crore NCD issue which will close on February 12, has about 270 branches with a significant presence in the southern region. The company is gradually expanding its branch network and Tier-2 and Tier-3 locations will be its focus areas.

It is in the process of opening 70 more branches before the end of this fisca. “We are currently operating in Madhya Pradesh, Maharashtra, Odisha, Andhra, Telangana, Tamil Nadu, Kerala and Karnataka, Delhi and Uttar Pradesh. In this quarter we would be entering Gujarat and Andamans,” Umesh Mohanan, Executive Whole-Time Director, Indel Money, told businessline.

“In Q1 of next fiscal, we will enter West Bengal and use Kolkata as the base to spread to the North-Eastern States in the following quarter,” he added.

Though the company may seem to have lesser number of branches compared with the competition, Indel Money claims to have achieved top positions (among the top 3) owing to product designs and other measures, wherever it has established branches.

Good potential

Mohanan explained that the non-south regions offered good potential for gold loan business. Contrary to the opinion, the gold loan option is very well taken by people in the north and other regions.

Of the 22,000 tonnes of household gold reserves (as of 2021), only 15 per cent is in the pledged market. Also, only 35 per cent of the market is covered by organised players such as banks and NBFCs, he said.

The company is focusing on co-lending model and would continue to strengthen the same with more tie-ups. It has built a portfolio of ₹600 crore through co-lending partnerships with DSB Bank and IndusInd Bank.

It will shortly sign up with another private bank for a ₹300-crore portfolio, while it is also working with the State Bank of India for a co-lending size of ₹400 crore

He said the company’s IPO plan was on track and it will enter the capital market in 2026-27.