Mumbai-based data and Saas company Pulse has acquired UK-based Nucleus Commercial Finance, a digital originator and servicer of SME loans, at an estimated valuation of Rs 450-500 crore, said people familiar with the development.

Nucleus is currently 46% owned by Prestige Capital Fund, 35% by Pulse promoter Chirag Shah, and the remaining stake is held by employees. The acquisition comes ahead of Pulse’s planned Rs 1,000 crore IPO, planned for end of calendar year 2026, and will help scale its UK operations.

The combined entity is expected to have a turnover of Rs 500 crore. Ahead of the IPO, Pulse is exploring a second round of funding to rope in a new set of investors and pursue inorganic growth opportunities through acquisitions.

In its first funding round, investors including Areeza India Strategy Partners — owned by Sidharth Ajwani and Rahul Menon, and Astorne Capital, acquired 7.67% and 3.63% stake, respectively.

"Nucleus has originated over Rs 35,000 crore to date and brings significant origination and servicing capability to the Pulse platform’’, said Shah.

“Nucleus will leverage Pulse’s unified lending infrastructure to grow originations by over 200% in the next 12 months. The deal will lead to doubling our revenues over the next year while sustaining margins’’, he added.

Post-acquisition, Nucleus will continue to operate as a separate entity, but the companies will work closely on product development to increase market share. "The deal gives Pulse full control over its embedded finance offering, reducing third-party dependencies," Shah explained.

In FY25, Pulse reported revenues of Rs 52 crore and a net profit of Rs 17 crore, according to filings accessed from Tracxn.

Founded in 2016, Pulse offers financial solutions for SMEs, banks, lenders, and advisors. Its products include credit risk assessment tools, cash flow monitoring dashboards, financial health scoring, and lending decision support systems.