New Delhi, Jan. 22 -- Gold loan-focused Indel Money has raised Rs 100 crore (around $11 million) in debt from Kotak Credit Opportunities Fund.

As part of the deal, the fund has subscribed to non-convertible debentures (NCDs) of Indel Money, with a tenure of 4.5 years.

"This partnership reflects strong institutional confidence in Indel Money's business fundamentals, governance, and scalable growth model within the gold loan NBFC space," CEO Umesh Mohanan said in a Linkedin post.

The company will use the proceeds for onward lending. The fundraise comes at a time when the Mumbai-based non-bank lender is also looking to raise equity and bring an external investor onto its cap table.

In September, Mohanan told VCCircle that the company had appointed Lincoln International as lead banker to manage the equity fundraise.

Indel Money was incorporated in 1986 as Payal Holdings. It was acquired by the current promoters in July 2012 and rebranded in January 2013. The NBFC primarily extends loans against gold jewellery and also operates in traders' loans, business loans, loans against property, vehicle loans, and money transfer services.

The company's net profit rose 10% year-on-year to Rs 61 crore in the financial year ended March 2025, driven by growth in its loan book. Assets under management rose 52% year-on-year to Rs 2,400 crore as of March 31, while disbursements stood at around Rs 6,000 crore in FY25.

The company expects to disburse Rs 10,000 crore in FY26 and end the year with an AUM of Rs 4,000 crore.

Gold loans account for 94% of the loan book, with the remaining 6% comprising loans to small and medium-sized enterprises. Indel Money operates across 15 states through over 370 branches.

Meanwhile, the Kotak Credit Opportunities Fund is a Category-II alternative investment fund (AIF) managed by Kotak Mahindra Asset Management Company. In May, Kotak Mahindra AMC announced the first close of its maiden performing credit fund at Rs 1,200 crore ($140 million). The fund has a hard cap of Rs 2,000 crore.

Published by HT Digital Content Services with permission from VC Circle.