OnEMI Technology Solutions, the parent company of digital lending platform Kissht, has approved a Rs 832 crore preferential issue to raise fresh equity capital from 34 non-promoter investors, marking a significant step to fuel its growth after its recent stock market listing.
- Rs 832 crore raised through preferential equity shares
- 34 non-promoter institutional investors participating
- Funding to support Kissht’s loan book and business growth
What happened
This capital raise comes less than five months after OnEMI’s successful IPO in May, where it raised Rs 926 crore. The funds from the IPO were partly earmarked to support its NBFC arm, Si Creva, and now the fresh equity aims to further bolster Kissht’s lending business. The preferential investors include major mutual funds and institutional players such as Axis Mutual Fund, HDFC Mutual Fund, Groww Mutual Fund, and Citi Global Markets, among others.
Why it matters
The Rs 832 crore infusion will strengthen OnEMI’s capital base as Kissht expands its digital lending portfolio. The company’s performance post-listing reflects strong growth, with June quarter operating revenue rising 45% year-on-year and net profit increasing 59%. Assets under management surged 61% to Rs 8,001 crore, along with a 37% increase in loan disbursements, indicating sustained momentum in its lending business.
By attracting a diverse mix of institutional investors at a slight discount, OnEMI is reinforcing investor confidence and positioning itself to capitalize on the fast-growing digital lending market in India. The fresh capital is expected to support increased loan book growth, technology investments, and potential new product expansions as the company builds on its initial success since launching in 2015.
What to watch next
Investors will also be closely observing OnEMI’s ability to sustain its stock price momentum, which has nearly doubled since the IPO due to robust earnings and digital lending trends. How the company balances growth with asset quality and capital management will be critical indicators of its long-term prospects in India’s competitive fintech landscape.