Manish Shah, MD and CEO, Godrej Capital

Godrej Capital, the financial services arm of Godrej Industries Group, is looking to grow its assets under management (AUM) to ₹50,000 crore in the next two years. The company is also eyeing entry into new product categories including gold loans.   

The company closed the financial year ending March 2026 with an AUM of ₹27,500 crore, up nearly 60 per cent from the ₹17,000 crore in FY25. The company posted profits of ₹375 crore in FY26 compared to ₹175 crore last year.

Speaking at a press conference here on Wednesday, Manish Shah, MD and CEO, Godrej Capital said that the company will look to grow through an expansion of its branch footprint and new product categories. “Today we are in about 100 locations and we want to grow this to over 200 locations. We want to enter new businesses like gold loans, supply chain finance and digital lending,” he said. 

Gold loans is an area of particular focus with the company planning to launch the product by June of this year. Shah said that the target is for a ₹1,000 crore AUM in gold loans by the next two years. 

Godrej Capital includes two entities. Godrej Housing finance focuses on home loans and Godrej finance, an NBFC that specialises in secured and unsecured business loans. The bulk of the company’s AUM comes from Godrej Finance, which has around ₹18,000 crore AUM.

In terms of impact of tariff-led disruption and the war in West Asia , Shah said that the business has shown overall resilience though the company has taken note of possible sectors facing stress and may recalibrate its exposure to some of the impacted sectors like merchandise exports if the issues persist.

On Godrej Capital’s presence in Tamil Nadu, Manish said that the company’s AUM in the state stood at ₹1,570 crore, up from the ₹800 crore in FY25. It operates branches across seven cities including Chennai, Madurai, Coimbatore and Tiruchirappalli among others. 

He said that currently the company’s presence in Tamil Nadu is dominated by small business financing, but the firm intends to grow its housing finance and other segments in the state as well. It is eyeing a AUM of ₹2,800 crore in Tamil Nadu by FY27. 

Interestingly, out of the firm’s ₹1,250 crore of AUM under its ‘Aarohi’ program for supporting women-led business, ₹200 crore are from Tamil Nadu- the highest in the country.  

Published on April 16, 2026

With macroeconomic uncertainty persisting, most investors expect IPO activity in the fintech space to remain muted in the near term, with a revival contingent on currency stability and improved market confidence
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Public listing plans of new-age fintech companies are being deferred as a weakening rupee, volatile macroeconomic conditions and a sharp drop in retail investor participation dampen sentiment in India’s primary markets.

Several start-ups that were preparing to tap the public markets are now recalibrating timelines, with investors advising caution amid currency pressures and valuation concerns. The rupee, among Asia’s weakest performers this fiscal, has added to cost pressures for companies with global exposure, while market volatility has made pricing more challenging.

“The question for quality fintech companies has never really been ‘can you IPO?’ — it’s always been ‘should you, and when?’,” said Arjun Malhotra, General Partner at Good Capital. “A weakening rupee and macro volatility create real headwinds for companies with dollar-denominated costs or international exposure. But for domestically anchored fintechs with strong unit economics, this is more a timing question than an existential one,” he added.

Investors said the current phase is pushing start-ups to strengthen fundamentals rather than rush to list. Many venture-backed fintech firms are focusing on profitability, cost discipline and building predictable revenue streams before approaching the market.

“Patience holds the key,” said Brijesh Damodaran, Managing Partner at Auxano Capital. “With a weakening rupee making foreign capital expensive and macro volatility increasing risk, it’s the long game. Companies need to demonstrate four to six quarters of consistent profitability and cash-flow positivity before considering a listing,” he added.

The slowdown in retail investor participation, which had been a key driver of strong IPO demand during the market’s peak phase, has further altered the equation. Market participants said the earlier frenzy often enabled aggressive pricing, a trend that is now reversing.

“Retail participation is a signal of market mood, not business quality,” Malhotra said. “During the peak years, it masked weak listings— companies could price aggressively and get away with it. What’s left now is the real question: would institutional investors want to own this at this price?”

As retail demand cools, fintech companies are increasingly being pushed to rely on institutional investors for anchor commitments and long-term capital support. This shift is expected to bring greater discipline to pricing and valuation strategies.

Damodaran added that softer retail interest is acting as a “reality check” for issuers. “To offset lower retail participation, companies must secure stronger institutional anchors and ensure pricing that supports long-term post-listing stability rather than short-term gains,” he said.

With macroeconomic uncertainty persisting, most investors expect IPO activity in the fintech space to remain muted in the near term, with a revival contingent on currency stability and improved market confidence.

Published on April 16, 2026