Digital lending platform Kissht, operated by OnEMI Technology Solutions, plans an IPO to raise ₹850 crore for its lending subsidiary. Despite strong AUM and customer growth, elevated NPAs and a heavy reliance on unsecured personal loans pose risks. Investors may await financial stability post-listing.

Can OnEMI Technology IPO offer value for long-term investors?

ET Intelligence Group: OnEMI Technology Solutions, which offers digital lending platform under the brand Kissht, plans to raise ₹850 crore through a fresh issue to strengthen the capital base of its lending subsidiary and ₹75.9 crore through an offer for sale. The promoter shareholding will drop to 24.8% after the IPO from 35.2%. The company has reported strong growth in asset under management (AUM) and customer base. However, elevated gross non-performing assets at around 3% and a heavy reliance on unsecured personal loans, which account for about 94% of total assets under management (AUM), are major risk factors. Given these factors, investors may prefer to wait for greater stability in financial metrics after listing.

Business

Incorporated in 2016, OnEMI offers personal loans and loans against property (LAP) with instant approvals and minimal paperwork. The company had over 28.7 lakh active customers and an AUM of ₹59,557 crore as of December 2025. Of this, personal loans and LAP accounted for ₹5,612 and ₹343 crore respectively. Its customers had an average age of 32 years and a median CIBIL score of 746 while 68% earned monthly incomes between ₹25,000 and ₹75,000 as of December 2025. According to a report by 1Lattice, a market intelligence and consulting firm, digital lending within the mass market segment is expected to surge to ₹4.1 lakh crore by FY30 from ₹60,000 crore in FY25, growing at 48% annually. The company had earlier proposed to raise ₹1,000 crore through a fresh equity issue. The management stated that it reduced the IPO size given higher than expected internal accruals.

In Instalments: company’s AUM rose 80% and net profit 141% over the last two years

Financials

AUM rose 80% annually to ₹4,086 crore between FY23 and FY25 while net profit grew by 141% to ₹160.6 crore. Net interest margin increased to 21% as of December 2025 from 18.6% in FY23. The share of AUM from repeat customers declined to 50.6% as of December 2025 from 87% in FY23 as company became cautious in customer acquisition.

Valuation

OnEMI is valued at a price-to-book (P/B) multiple of 1.4 on post-IPO basis. It has no direct listed peers. Some of the small and medium sized finance companies such as Aye Finance, MAS Financial Services, SBFC Finance, and Fedbank Financial Services trade at P/Bs of 1.3, 2.1, 3, and 1.9. respectively.

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