Whalesbook
OnEMI Technology's expansion plans face a core challenge: balancing rapid growth with the risks of its lending model. While the company uses digital channels to reach India's underserved credit market, its heavy reliance on unsecured loans and an evolving regulatory landscape demand careful investor review beyond just growth numbers.
IPO Details and Market Debut
OnEMI Technology Solutions, the company behind the Kissht digital lending platform, commenced its Initial Public Offering (IPO) today, April 30, 2026. The offering aims to raise approximately ₹925.92 crore, including ₹850 crore from fresh equity issuance and ₹75.92 crore via an offer for sale. The price band is set between ₹162 and ₹171 per share. In early trading on unlisted markets, shares showed a modest grey market premium (GMP) of around 2.63%, suggesting a potential listing price of ₹175.50. The IPO closes on May 5, with share allotment expected by May 6 and listing on May 8 on both the BSE and NSE. Proceeds from the fresh issue will primarily strengthen the capital base of its NBFC subsidiary, Si Creva, to fund future loan growth, with the remainder for general corporate purposes.
Growth Drivers and Analyst View
OnEMI's strategy focuses on capturing a significant share of India's fast-growing digital lending market. The company has expanded its user base to over 63 million registered users and 11 million active customers, with Assets Under Management (AUM) reaching ₹5,955.75 crore as of December 31, 2025. This growth is powered by a digital-first approach and data-driven underwriting, targeting the mass market with limited credit access. Analysts at Anand Rathi recommend a 'Subscribe-Long Term' rating, valuing the company at 1.4 times its FY25 Price-to-Book (P/B) ratio, implying a post-issue market capitalization of ₹2,881 crore. This valuation is seen as fair, though it lags behind the P/E multiples of established institutions like Bajaj Finance (32.20x) and SBI Cards (28.45x), which have diversified revenue streams and a higher proportion of secured assets.
The broader Indian fintech lending sector saw substantial activity, with 47 tech IPOs in FY26 alone, indicating strong investor interest. However, a trend towards profitability and financial stability over pure growth is becoming apparent, which could affect how OnEMI's rapid expansion is viewed. The company's revenue fell to ₹1,352 crore in FY25 from ₹1,700 crore the previous year, though net profit increased to ₹160.6 crore, with margins improving. CEO Ranvir Singh expressed confidence in investor demand, suggesting it remains decent despite geopolitical concerns in West Asia that have contributed to currency volatility and foreign fund outflows impacting the broader market.
Key Risks: Unsecured Loans and Regulation
Despite the growth narrative and a 'Subscribe' recommendation from Anand Rathi, OnEMI Technology's business model faces significant risks. The primary concern is its loan book, which is predominantly unsecured, making up about 94% of its Assets Under Management (AUM). This high proportion exposes the company to increased credit and default risk, especially during economic slowdowns or stricter regulatory periods. While Gross Non-Performing Assets (GNPAs) were around 2.9% as of March 2025, supported by high provisioning, the inherent risk of an unsecured portfolio remains a major challenge.
India's regulatory landscape for digital lenders is also changing. The Reserve Bank of India's (RBI) Master Directions on Digital Lending, introduced in 2025, aim to boost transparency, borrower protection, and data privacy. While these rules promote responsible lending, they could raise compliance costs and limit some fintech operational models. OnEMI has also mentioned pending legal cases, which add another layer of potential risk. The company's dependence on its subsidiary Si Creva for on-book loans creates operational links that could affect its financial health if disrupted.
Outlook for OnEMI
OnEMI Technology is set to benefit from the ongoing growth in India's digital lending market. The company has a scalable digital ecosystem, proprietary algorithms, and a large user base, forming a solid foundation. However, achieving lasting profitability and investor returns will depend on its skill in managing credit risk from its largely unsecured loans, adapting to regulatory changes, and navigating a competitive market. Analysts see strong growth potential but are watching asset quality and execution closely.