Facing a challenging economic environment and regulatory pressures, Indian lending startup Kissht is pressing ahead with its IPO by emphasizing strong earnings, asset growth, and improved risk management.
- Profit rebounds sharply with ₹199.3 Cr PAT in 9 months of FY26
- AUM more than doubled to nearly ₹6,000 Cr with NBFC control
- IPO size trimmed; promoters buying shares to boost investor confidence
What happened
Kissht is moving forward with its initial public offering even as market volatility persists globally and regionally. The lending startup faced a tough fiscal year 2025 due to regulatory restrictions imposed by India's central bank on unsecured lending, which impacted both revenue and profits. In response, the company curtailed loan disbursements and concentrated on lower-risk customers to protect its profitability.
This strategy enabled Kissht to return to profitability, recording a profit after tax (PAT) of ₹199.3 crore in the first nine months of FY26. Concurrently, the company’s assets under management (AUM) surged by over twice, reaching ₹5,956 crore by December 2025. Kissht’s in-house non-banking financial company (NBFC) has been pivotal, allowing it tighter control over lending processes such as underwriting and collections.
Why it matters
Kissht’s approach exemplifies how startups in the Indian fintech sector can navigate regulatory challenges by prioritizing risk management and profitability over rapid but unsustainable growth. By emphasizing secured lending products and cross-selling initiatives like health insurance, Kissht is diversifying its portfolio, which can provide more stable and predictable revenue streams.
The company’s decision to reduce its fresh issue size and offer shares from promoters at premiums is aimed at building trust among institutional investors. Early subscription data suggest growing interest despite the volatile backdrop, reflecting confidence in Kissht’s business model and governance. This IPO timing and structure could serve as a benchmark for other fintech startups contemplating public listings in uncertain market conditions.
What to watch next
Investor sentiment during the remainder of Kissht’s IPO subscription period will be critical to gauge whether initial demand sustains momentum in a fluctuating capital market. Monitoring how the company balances growth ambitions with conservatism in underwriting and lending products will shed light on its long-term resilience.
Additionally, tracking the expansion of Kissht’s secured lending vertical and the uptake of ancillary financial products will be important to assess the depth of customer engagement and revenue diversification. The broader fintech industry's IPO performance in India, especially firms with similar regulatory challenges, will also provide insights into evolving investor appetite.