Even as digital lending in India is going through a transition phase with shrinking revenues for major lending apps, Mumbai-based Kissht has decided to take the plunge and go for a public issue.

Incidentally, the company is going into the IPO run with a decline in revenue in the previous fiscal year, despite operating an NBFC-led model. Consequently, there will be a lot of focus on whether Kissht’s lending business can continue to show high profitability even after the IPO.

The timing of the proposed issue is on Kissht’s side — it comes amid positive market sentiment and ahead of the DRHPs of its bigger rivals such as Navi Finserv, Fibe, and Kreditbee, all of whom are preparing for their own public listings.

Against this backdrop, we decided to take a closer look at how well-positioned Kissht is for a smooth market debut.

Backed by marquee names such as Vertex Ventures, Endiya, Alteria Capital, and cricketer Sachin Tendulkar, among others, the startup has initiated regulatory proceedings to go public after a decade of building its business in lending, which currently has about INR 4,100 Cr asset under management (AUM).

Reports doing rounds earlier this year hinted at almost an INR 2,000 Cr offering, but as per its draft papers, Kissht is raising INR 1,000 Cr in fresh funds.

From Unsecured Loans To Secured Lending

Kissht’s business empire is built on unsecured lending, the segment in which the Reserve Bank of India (RBI) increased risk weightage in November 2023, leading to a massive outcry across the lending tech ecosystem.

Paytm faced a hard time following the incident, ZestMoney shut down, while many other companies had to start pivoting or lower exposure to this segment. Even the likes of MobiKwik have seen digital lending revenue shrink and the focus has turned to other segments.

The RBI’s increased scrutiny on unsecured loans started after multiple complaints against digital lending apps, which often resorted to malpractices to recover loans from customers. Today, the industry is gradually moving towards merchant loans and secured loans.

However, Kissht’s unsecured personal lending today contributes to 98% of its AUM (as of FY25). This explains the revenue shrinking to some extent.

The company aims to channelise INR 750 Cr from the IPO proceeds to augment the capital base Si Creva, which is Kissht’s NBFC arm. Personal loans are disbursed through Si Creva, which alone comprises more than 60% of Kissht’s total AUM, and other NBFC partners.

Besides personal loans, Kissht has added secured loans through loans against property (LAP) in the Q4 FY24, but this contributed to less than 2% to its total AUM in FY25.

Kissht has a hybrid model offering a physical experience and currently offers LAP through 62 branches across six states and one union territory.

While it is quite clear that Kissht is trying to make........

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