Gold-loan resolution in hours, seeking ₹5 crore of growth capital
A ten-year-old business that clears distressed gold loans at the lender's branch, takes the released gold and sells it on the same day.
Opportunity in brief
Banks and NBFCs lend against gold but offer nothing to a borrower who can no longer repay. Project Gold fills that gap: it pays off the loan, takes the gold and settles the surplus with the borrower. The promoters are raising capital to take a proven two-market operation into new territories.
At a glance
Basis of preparation. All figures are management-reported, for years ending 31 March, as presented by management, and have not been verified by the adviser.
FY2025 is the latest year shown. No later year is included in this document.
How the model works
Each case follows one fixed sequence, run on the day the borrower is met.
Management states the two layers produce a 5% gross spread per case. Section 04 shows what was realised on volume.
Investment highlights
Two-layer unit economics
A 3% service fee on the loan cleared and a 2% margin on the gold sold, both earned in one cycle.
3% + 2%Capital out for hours
Funds leave when the gold is released and return the same day. Management reports no loan book and no receivables.
2–3 hour cycleTen-year origination record
Leads convert through direct borrower contact, without a branch network or a lending licence cited in the file.
10,000+ casesUseful to the lender
The lender recovers an overdue account without a notice, an auction vendor or a recovery step.
Two metros servedFew organised competitors
Management reports a fragmented market, with organised players concentrated in southern India. Management also states the model is easy to replicate.
Early-mover windowFinancial snapshot
The table shows three years of volume, gross profit and the margin on volume between them.
| FY2023 | FY2024 | FY2025 | |
|---|---|---|---|
| Transaction volume | 11 | 11 | 13 |
| Volume growth | — | 0.0% | 18.2% |
| Gross profit | 0.58 | 0.60 | 0.60 |
| Gross margin on volume | 5.3% | 5.5% | 4.6% |
The weakest number. Volume rose 18% in FY2025 while gross profit stayed at ₹0.60 Cr, so margin on volume fell 0.8 points. Management attributes the flat three-year record to a fixed footprint: two cities, one infrastructure base and one capital base.
Management has also prepared a five-year plan. It is management's own, not a forecast, not validated by the adviser and carries no weight in valuation until tested. It is available to parties who sign the NDA.
The proposition
The promoters seek ₹5 crore and are open to equity, unsecured debt or a hybrid. Most of it funds working capital, and the rest funds expansion support.
| Working capital | 4.25 | 85% |
| Branding | 0.30 | 6% |
| Infrastructure | 0.25 | 5% |
| Technology | 0.20 | 4% |
| Total | 5.00 | 100% |
Phase 1: rest of the home state
Resident representatives in key zones within about 250 km, backed by a central office.
Phase 2: other states
Three to five major cities per state, through own offices and a franchise model.
Management
Five people run and advise the business; three come from the promoter family.
| Promoter-Director (1) | Commerce graduate; 41 years' experience, of which 18 in chairman's or managing director's offices of listed companies and 23 in business since 2002. |
| Co-Promoter (2) | Runs operations and execution; in the family business since 2002. |
| Director (3) | Second generation; leads digital marketing, customer acquisition and business development. |
| Chief Operating Officer | Commerce graduate; 17 years in manufacturing, managing a team of over 50. |
| Mentor-Director | Chartered accountant; 50 years in practice; sits on several company boards. |
Key-man. Deal sourcing and lender relationships sit with the promoter family. No second-line operations team is described in the file.
Risks and mitigants
Growth is not yet evidenced
Volume was flat for two of three years. Management cites a fixed footprint, so a funded expansion into new territories will be the first test of that claim.
Thin spread, no cost data
The 5% is gross. Testing, melting loss, travel and tax sit below it, and the 2% resale premium depends on dealer terms that buyers will want to see.
Regulatory characterisation
A fee-based buyback sits between lending and gold trading. Management states the process is legal and GST-compliant; licence and tax positions will be documented in the data room.
Replication
Management's own SWOT notes the model is simple to copy and a large entrant could compress margin. The ten-year record and lender relationships are the defence.
Limited technology
Management lists minimal technology as a weakness, with ₹0.20 Cr earmarked in the use of proceeds. Scaling across territories will depend on systems that do not yet exist.
Process and next steps
Enquiries go to CA Dhiraj Ostwal & Co. — Transaction Advisory, and not to the company, its lenders or its staff.
Disclaimer. This teaser is issued by the adviser for discussion only. It does not identify the company, is not an offer or invitation to subscribe for or buy any security, and forms no basis for any contract. Information comes from management, has not been independently verified, and no representation is made as to its accuracy or completeness. Recipients must keep it confidential and conduct their own diligence.