Whalesbook
Valuation and Promoter Investment
OnEMI Technology Solutions, which runs the digital lending platform Kissht, plans to launch its Rs 926 crore IPO on April 30, 2026. The company is valued at about Rs 2,881 crore at the IPO's upper price limit of Rs 171 per share. Its post-IPO Price-to-Earnings (P/E) ratio is roughly 10.84 times, based on its annualized 9-month FY26 earnings. The Price-to-Book (P/B) ratio is 0.91 times. These figures are significantly lower than the average fintech sector P/E of 52.32 times. The company is priced below its book value, a point that might attract investors but also raises questions about asset quality and future earnings.
To show confidence, promoters Ranvir Singh and Krishnan Vishwanathan are investing around Rs 40 crore at Rs 201 per share. This price is higher than the IPO band. This move aims to reduce investor worries about promoter dilution and the company's valuation.
Revenue and Profit Dip Amid Expansion
Kissht has grown its Assets Under Management (AUM) substantially, from about Rs 1,267 crore in FY23 to Rs 5,955 crore in the first nine months of FY26. However, this growth came with financial challenges. Revenue from operations fell by over 20% in FY25, dropping to Rs 1,337.46 crore from Rs 1,674.44 crore in FY24. Net profit also decreased by 18.6% to Rs 160.6 crore in FY25 from Rs 197.2 crore in FY24. Finance costs more than doubled in FY25, reaching Rs 164.4 crore, which heavily impacted profits. The company has also changed its loan book mix, shifting from unsecured, short-term loans to longer-term products, which now make up about 95% of the book as of March 2025, up from 65% a year earlier.
Rising NPAs Signal Risk
A major concern for OnEMI Technology Solutions is its asset quality. Gross non-performing assets (GNPAs) have jumped from a minimal 0.05% in FY23 to 0.79% in FY24, and then to 2.89% in FY25. This is especially worrying because about 94% of the company's AUM is unsecured. Provision coverage also decreased to 91.48% in FY25 from 100% in earlier years.
Financial Structure Under Pressure
Further risks are highlighted by the company's financial structure. Its debt-to-equity ratio is 1.63. Borrowings have increased sharply from Rs 388 crore in FY23 to Rs 2,048 crore by 9MFY26. The company reported negative operating cash flows of Rs 661 crore for the first nine months of FY26 and Rs 825 crore for FY25. Contingent liabilities stand at Rs 1,279 crore, and working capital days have significantly extended from 360 to 509 days. These figures suggest a company with high leverage facing growing credit costs and cash generation challenges.
Market Shifts Favor Profitability and Security
The Indian fintech lending sector is changing. While overall fintech funding stayed steady in 2025, lending funding dropped significantly as investors increasingly preferred secured lending models over unsecured ones. This trend, along with currency depreciation and global market volatility in FY26, has created a tougher investment climate. Investors now prioritize profitability over rapid growth.
Fintech companies like Kissht operate in an environment shaped by clearer rules for Buy Now Pay Later (BNPL) and digital lending, and the adoption of frameworks like Account Aggregator for smoother underwriting. However, NBFC Fintechs, despite rapid growth, face regulatory actions that have slowed their expansion. Kissht’s reliance on unsecured lending and its recent financial declines pose significant challenges. Many startup IPOs from 2025 are trading below their issue price, showing a demand for proven profitability. While Kissht has no direct listed rivals, its financial health will be closely watched against the market's evolving risk appetite.