OnEMI Technology Solutions, the parent firm of the Kissht platform, has received regulatory approval to raise Rs 832.2 crore through a preferential equity issue. The funds will primarily support its lending subsidiary, Si Creva Capital Services, as the company seeks to expand its credit business and improve its capital base following its IPO earlier this year.
OnEMI Technology Solutions has received in-principle approval from the BSE and NSE for a preferential equity issue worth Rs 832.2 crore. The company plans to issue over 26.49 million shares to a consortium of 34 institutional investors at a price of Rs 314.11 per share. This capital raise involves notable financial institutions, including Axis Mutual Fund, HDFC Mutual Fund, Groww Mutual Fund, and Citigroup Global Markets Hong Kong, along with the Massachusetts Institute of Technology.
Scaling Digital Lending Operations
The primary objective of this fundraise is to support the company’s wholly-owned subsidiary, Si Creva Capital Services, which operates the lending business. OnEMI intends to allocate 75% of the total proceeds directly to this lending arm. This capital is intended to scale digital lending operations, build out technological infrastructure, and diversify the company's product range. For a non-banking financial company, or NBFC, capital strength is critical as it dictates the ability to lend and leverage the balance sheet. By injecting equity into the subsidiary, the company aims to improve its capital adequacy ratios, which is a regulatory requirement that governs how much risk an NBFC can take.
Strategic Financial Goals
Beyond expanding its loan book, management expects this capital infusion to improve the firm's credit ratings. In the financial sector, higher credit ratings are essential as they allow companies to borrow money from banks and other lenders at lower interest rates. Reducing the cost of borrowing is a key lever for improving profit margins in the lending business. The remaining 25% of the funds from this issue are designated for general corporate purposes, providing the company with liquidity to support its operations as it matures.
This capital activity follows the company's public listing in May 2026. Since its debut, the company has been focused on establishing its footprint in India's competitive fintech market. The digital lending sector in India remains under strict oversight by the Reserve Bank of India, particularly regarding digital lending guidelines and fair practices. As the company expands, investors are tracking its ability to manage asset quality, as rapid growth in digital credit can sometimes lead to an increase in non-performing assets if not managed with strict underwriting standards.
With the in-principle approval secured, the next steps include completing the share allotment process and obtaining final listing permission from the exchanges. Investors will likely watch the company’s upcoming quarterly results to see how this capital deployment impacts its interest margins and overall credit portfolio growth.