Mumbai based data and SaaS company Pulse has announced its intention to acquire Nucleus Commercial Finance, a UK based digital originator and servicer of SME loans, in a deal valued at approximately Rs 450-500 crore. This strategic acquisition represents a significant milestone for Pulse as it prepares for its anticipated Rs 1,000 crore initial public offering scheduled for the end of calendar year 2026.
Strategic Rationale Behind the Acquisition
The transaction positions Pulse to substantially expand its presence in the UK lending market while consolidating its embedded finance capabilities. Nucleus Commercial Finance brings considerable operational expertise, having originated over Rs 35,000 crore in loans since its inception. The company’s robust origination and servicing infrastructure will integrate with Pulse’s unified lending platform, creating synergies expected to drive substantial growth.
Currently, Nucleus’s ownership structure includes Prestige Capital Fund with a 46% stake, Pulse promoter Chirag Shah holding 35%, and the remaining shares held by employees. The acquisition will provide Pulse with full operational control while reducing dependencies on third-party service providers.
Financial Projections and Growth Outlook
The merged entity is projected to achieve a combined turnover of Rs 500 crore. Management has outlined ambitious growth targets, including plans to increase Nucleus’s loan originations by over 200% within the next twelve months. According to Chirag Shah, the deal is expected to double Pulse’s revenues over the coming year while maintaining existing profit margins.
Pulse demonstrated strong financial performance in FY25, recording revenues of Rs 52 crore alongside net profits of Rs 17 crore. The company previously secured funding from investors including Areeza India Strategy Partners and Astorne Capital, who acquired 7.67% and 3.63% stakes respectively. Ahead of the IPO, Pulse is exploring additional funding rounds to attract new investors and pursue further inorganic growth opportunities.
Operational Integration
Post acquisition, Nucleus will maintain its independent operational status while collaborating closely with Pulse on product development initiatives. This structure aims to leverage the strengths of both organizations while expanding market share in the competitive SME lending sector. Founded in 2016, Pulse specializes in providing financial solutions including credit risk assessment tools, cash flow monitoring systems, and lending decision support platforms for SMEs, banks, and financial advisors.
