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Economic Times
26-06-2025
- Business
- Economic Times
Digital lending startups put off IPO plans amid muted growth
Several digital lending startups reported a slowdown in growth in financial year 2025 amid rising credit and operating expenses and tighter regulatory norms. According to people in the know, the muted performance might affect some of their plans to go public in this year. While Moneyview and Kissht are in the process of filing their draft documents with the market regulator, Kreditbee is seeking a board approval to convert itself into a public limited company, taking one step closer to its IPO. "Many of these fintechs are just looking to keep their regulatory clearances in place, but will eventually want to time their public listing when their financials are in a better place and overall market sentiments have changed," said a founder of a digital lending startup. Lending platforms such as Axio, Fibe, Moneyview and Kreditbee showed divergent performance in FY25. 'Lending companies saw higher operating expenses as credit quality worsened, and regulatory tightening forced businesses to slow disbursals and grow more cautiously,' chief executive officer of a digital lending startup said on condition of Kreditbee reported a comparatively muted net profit growth of just over 10% in FY25 at Rs 221 crore, up from Rs 200 crore in FY24, while its operating revenue jumped 56% to Rs 2,185 crore from Rs 1,399 crore.A sharp 67% year-on-year increase in expenses to Rs 1,890 crore in FY25 dented the bottom-line growth of Kreditbee, which primarily offers unsecured consumer Moneyview reported an improvement in the returns on its assets under management (AUM) while it slowed down disbursement growth in the last fiscal.'Since the second half of FY25, the company has consciously reduced disbursements and plans modest AUM growth in FY26,' India Ratings and Research said in a ratings document issued on April Bengaluru-based startup's return on average assets deployed went up to 6.8% in the first nine months of the last fiscal, compared to 6.65% in details of financial performance of the company are not available. Fibe, which raised $90 million through a mix of primary and secondary funding in June 2024, performed better than its rivals. The Pune-based startup, which offers personal loans and instant cash loans, nearly doubled its net profit to Rs 100 crore in FY2025, up from Rs 55 crore in FY24, taking more out of its operating income of Rs 1,033 crore in FY25 against Rs 708 crore in the preceding lending platform Axio (formerly Capital Float), reported a pre-provisioning profit of Rs 24 crore in the first half of the fiscal year 2025, down from Rs 81 crore in FY24. Axio is in the process of getting acquired by ecommerce major Amazon. The deal is awaiting clearance from the Reserve Bank of India. According to a rating document issued by Crisil Ratings in January, credit costs of Axio surged to 7% in the first half of FY25 from 4% in promoters are hopeful that despite the challenges, the sector should do better in coming months as there is stability. IPO still some time away An Indian partner at a large US-based venture fund with multiple fintech investments said that while several digital lenders are preparing for IPOs, most are likely to wait until the December quarter before filing their final prospectus for a public listing.'For some, the IPO is a route to provide exits for existing investors. For others, it's more about testing market appetite,' he said, adding that these companies aim to complete the fundraising process while they still have venture capital in the chief executive quoted earlier said the first set of draft red herring prospectus (DRHP) filings for IPOs by digital lending startups will likely happen by the end of July. Sebi approvals could take another three months, followed by a two- to three-month window before the companies are ready to go public.'Overall, it's a nine-month process. So, timing the market becomes key for any fintech looking to list,' the CEO said. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Punit Goenka reloads Zee with Bullet and OTT focus. Can he beat mighty rivals? 3 critical hurdles in India's quest for rare earth independence HDB Financial may be cheaper than Bajaj Fin, but what about returns? INR1,300 crore loans for INR100? Stamp duty notice to ArcelorMittal, banks. Stock Radar: Titan Company breaks out from 3-month consolidation; check target & stop loss for long positions For risk-takers: More than bullish, be selective; 5 mid-cap stocks from different sectors with an upside potential of up to 38% Multibagger or IBC - Part 12: If transition is successful then there is no limit. But there is a big 'IF' These mid-cap stocks with 'Strong Buy' & 'Buy' recos can rally over 25%, according to analysts
Time of India
26-06-2025
- Business
- Time of India
Digital lending startups put off IPO plans amid muted growth
Academy Empower your mind, elevate your skills ETtech Several digital lending startups reported a slowdown in growth in financial year 2025 amid rising credit and operating expenses and tighter regulatory norms. According to people in the know, the muted performance might affect some of their plans to go public in this Moneyview and Kissht are in the process of filing their draft documents with the market regulator, Kreditbee is seeking a board approval to convert itself into a public limited company, taking one step closer to its IPO "Many of these fintechs are just looking to keep their regulatory clearances in place, but will eventually want to time their public listing when their financials are in a better place and overall market sentiments have changed," said a founder of a digital lending platforms such as Axio Fibe , Moneyview and Kreditbee showed divergent performance in FY25.'Lending companies saw higher operating expenses as credit quality worsened, and regulatory tightening forced businesses to slow disbursals and grow more cautiously,' chief executive officer of a digital lending startup said on condition of Kreditbee reported a comparatively muted net profit growth of just over 10% in FY25 at Rs 221 crore, up from Rs 200 crore in FY24, while its operating revenue jumped 56% to Rs 2,185 crore from Rs 1,399 crore.A sharp 67% year-on-year increase in expenses to Rs 1,890 crore in FY25 dented the bottom-line growth of Kreditbee, which primarily offers unsecured consumer Moneyview reported an improvement in the returns on its assets under management (AUM) while it slowed down disbursement growth in the last fiscal.'Since the second half of FY25, the company has consciously reduced disbursements and plans modest AUM growth in FY26,' India Ratings and Research said in a ratings document issued on April Bengaluru-based startup's return on average assets deployed went up to 6.8% in the first nine months of the last fiscal, compared to 6.65% in details of financial performance of the company are not which raised $90 million through a mix of primary and secondary funding in June 2024, performed better than its Pune-based startup, which offers personal loans and instant cash loans, nearly doubled its net profit to Rs 100 crore in FY2025, up from Rs 55 crore in FY24, taking more out of its operating income of Rs 1,033 crore in FY25 against Rs 708 crore in the preceding lending platform Axio (formerly Capital Float), reported a pre-provisioning profit of Rs 24 crore in the first half of the fiscal year 2025, down from Rs 81 crore in is in the process of getting acquired by ecommerce major Amazon . The deal is awaiting clearance from the Reserve Bank of to a rating document issued by Crisil Ratings in January, credit costs of Axio surged to 7% in the first half of FY25 from 4% in promoters are hopeful that despite the challenges, the sector should do better in coming months as there is Indian partner at a large US-based venture fund with multiple fintech investments said that while several digital lenders are preparing for IPOs, most are likely to wait until the December quarter before filing their final prospectus for a public listing.'For some, the IPO is a route to provide exits for existing investors. For others, it's more about testing market appetite,' he said, adding that these companies aim to complete the fundraising process while they still have venture capital in the chief executive quoted earlier said the first set of draft red herring prospectus (DRHP) filings for IPOs by digital lending startups will likely happen by the end of July. Sebi approvals could take another three months, followed by a two- to three-month window before the companies are ready to go public.'Overall, it's a nine-month process. So, timing the market becomes key for any fintech looking to list,' the CEO said.
Business Standard
16-06-2025
- Business
- Business Standard
Ignosis Transforms Whizdm Finance's Banking Data Sourcing with Account Aggregator Orchestration
PNN New Delhi [India], June 16: As India's Account Aggregator ecosystem experiences 12% monthly growth and crosses Rs 1.3 lakh crore in facilitated loans, financial data infrastructure company Ignosis has partnered with Whizhm Finance Private Limited (Whizdm Finance), a subsidiary of Moneyview Private Limited (formerly known as Whizdm Innovations Private Limited), which operates the Moneyview app to solve one of digital lending's most persistent challenges. The collaboration has enabled Whizdm Finance to overcome the industry-standard 60-65% success rate ceiling that has constrained AA-based lending despite the framework handling 3.5 lakh approved daily consents nationwide. "We continuously seek to optimize every stage of the borrower journey. Ignosis's Multi-AA routing solution has significantly enhanced the reliability of our Account Aggregator flow, resulting in a 20% increase in success rates and a 4.5% growth in overall disbursals," says Manoj Dronadula, Senior Director - Products and Head of Loans at Moneyview. The technology developed by Ignosis creates an intelligent orchestration layer that automatically redirects data requests when any single AA provider encounters issues--prioritizing application completion rather than specific data channels. "We designed our solution to focus on outcomes rather than processes," says Nirav Prajapati, CEO of Ignosis. "When one AA path faces problems, another seamlessly takes over, creating a consistent experience that treats every application with equal importance." This breakthrough has enabled Whizdm Finance to scale its monthly volume to 85,000-90,000 successful data pulls, and Whizdm's robust infrastructure is now capable of handling up to 50,000 daily AA pulls, ready for continued growth in demand. Beyond improving initial success rates, Ignosis implemented a dual consent framework that streamlines the customer journey while extending visibility throughout the loan lifecycle. Ignosis' robust data infrastructure now provides a powerful foundation for significant future innovation at Whizdm Finance. This infrastructure facilitates smarter, more dynamic risk modeling, optimizes collections strategies with timely financial insights, and supports creating deeply personalized products leveraging ongoing data access.
Time of India
02-05-2025
- Business
- Time of India
Gold-loan fintech firms spot a glimmer in RBI's draft rules
Live Events As the Reserve Bank of India strengthens its rules of governance around the gold loan sector , new-age fintech firms are sensing an opportunity either through partnerships with banks and non-banking lenders or by scaling up on their April 9, the RBI issued draft guidelines to harmonise the regulatory framework for gold loans , strengthen aspects around the conduct of gold loan lenders and also address regulatory concerns observed around the new lenders like L&T Finance and Poonawala Fincorp announcing their entry into the gold loan business over the last two months, startup founders believe that there will be fresh co-lending opportunities that will open up.'Co-lending is an opportunity for fintechs, many large fintechs which were only doing unsecured consumer lending are now seriously evaluating this space through co-lending partnerships with NBFCs and banks. This will also help them expand their secured credit offerings,' said the founder of a digital lending startup operating in this Rupeek, Chennai-headquartered Oro Money, Noida's Indiagold and Manipal Fintech of Gurugram are a few of the major startups operating in this space. Earlier this year Manipal Fintech onboarded Puja Abhishek Singh as its new chief executive officer. Singh joined the company from Paytm, where she was heading business lending startup Moneyview, which in September 2024 was valued at $1 billion through an internal funding round, is looking to start offering gold loans, said a person in the know. Moneyview did not respond to payments firm PhonePe, which is scaling up its credit operations, has begun acquiring gold loan customers for Muthoot Finance and Muthoot Fincorp through its mobile April, BankBazaar, which is primarily an unsecured loan sourcing platform, partnered with Muthoot Fincorp to source gold loan customers for the NBFC through digital channels. Muthoot Fincorp, a gold loan NBFC, also acquired a small stake in Bank Bazaar by investing Rs 15 crore.'We want regulatory stability and clarity; 65% of the gold loan market in India is not formally served yet. We want to do business properly, so the regulator's formal directives will only help us expand our network of fintech partnerships ,' Muthoot Fincorp CEO Shaji Verghese is estimated to have around 25,000 tonnes of gold holdings across its households and borrowing against gold jewellery is a very popular means of protecting families from sudden financial shocks. This is one of the reasons why everyone from high street lenders and gold lending NBFCs to new-generation fintechs have been chasing this market.'Overall, this circular will give more power to banks to create income generation gold loan products,' said the founder of another gold loan startup. Since the regulations are still in the draft stage, the founders remained regulations will help the sector get more organised, industry observers also believe that higher regulatory requirements might also dampen the growth prospects of some of the traditional lenders operating in this these NBFCs have mostly worked on a branch-led model where the gold is assayed physically and loan disbursal happens on the go, mandatory underwriting of the customer which the RBI has mentioned in the draft rules might make the disbursal process time consuming and like Perfios and others can actually help estimate the income of a customer through bank statements, but the question remains if these cost-sensitive NBFCs will open up to work with these players.'The RBI wants banks to undertake cash flow analysis of the customer, assess the income of the customer, but gold loans all these years have mostly been given on the value assessment of the gold. This extra step might become a barrier for these cost-conscious lenders,' said Siddharth Goel, director, non-banking financial institutions, Fitch believes that this will push NBFCs to only do consumption loans and stay away from income generation products. But gold loans have been the go-to product for shopkeepers who are typically not eligible for unsecured credit products; so how that market will be impacted remains the question.'Perhaps the new-generation NBFCs entering this space will approach the product differently and engage the services of fintechs. The traditional ones might not be so proactive with regards to fintech partnerships,' Goel said.
