IndiaGold turns profitable, secures NBFC licence as gold-loan demand soars

IndiaGold, the gold-loan fintech operated by Flat White Capital, has turned profitable at the profit-after-tax (PAT) level in the current financial year and has also secured a non-banking financial company (NBFC) licence, according to two sources aware of the company’s details.

The development comes amid strong momentum in gold-backed credit across the country, as both borrowers and lenders increasingly favour secured lending. Industry data from CRIF High Mark shows that retail loans grew 18% year-on-year in Q2 FY26, with gold loans expanding 35.8% YoY. During the quarter, gold-loan originations surged 53% year-on-year to Rs 6.05 lakh crore.

The data also points to a clear shift towards higher-ticket gold loans. Loans above Rs 5 lakh now account for over 30% of total gold-loan originations by value, while the Rs 2.5–5 lakh segment has steadily gained share over the past two years. In contrast, the contribution of loans below Rs 1 lakh has declined, a sign of wider usage beyond small, emergency-driven borrowing.

While smaller-ticket loans continue to dominate volumes, gold loans are increasingly being used for business-linked needs, particularly by self-employed individuals and micro-entrepreneurs. The category also remains a key entry product for first-time borrowers, with new-to-credit customers accounting for around 15% of origination value in Q2 FY26.

Geographically, gold-loan adoption is becoming more evenly distributed. Nearly two-thirds of originations now come from cities beyond the top nine metros, underscoring the category’s expanding pan-India footprint.

According to sources, NBFC licence and its first profitable year would support the next phase of growth for its regulated lending business. 

While the company declined to comment on the story, a company’s spokesperson said that the focus will remain on strengthening risk management, operations, and customer experience as the Gurugran-based firm scales its gold-backed credit offerings.

On the funding front, IndiaGold has raised $24 million to date, with its latest funding round coming in November 2022. It competes with digital-first players such as Rupeek, as well as traditional brick-and-mortar lenders including Muthoot Finance and Manappuram Finance.