Just four months after locking in Rs 926 crore through its IPO, digital lending platform Kissht parent company, OnEMI Technology Solutions, is back in the market for fresh fundraise. Company proposed move has left investors questioning whether the fintech player is aggressively funding expansion or battling a high cash burn rate.
OnEMI Technology Solutions, the parent company of digital lending platform Kissht, is looking to raise fresh capital just months after entering the stock market. The company has scheduled a board meeting on September 17 to consider a new fundraising proposal.
The proposed issue comes around four months after OnEMI raised Rs 926 crore through its initial public offering and made its stock market debut in May. The latest move indicates that the company could be looking to strengthen its capital base as its lending business continues to expand.
According to a regulatory filing, the board will consider raising funds through equity shares, warrants, convertible securities or other eligible instruments. The company may use routes such as preferential issue or private placement, subject to the required regulatory and shareholder approvals.
OnEMI Plans New Fundraise
OnEMI has not disclosed the amount it plans to raise or identified any potential investors for the proposed transaction. The final structure and size of the issue are expected to become clearer after the board meeting and subsequent approvals.
The company has also informed the stock exchanges that its trading window has been closed for designated persons and their immediate relatives. The restriction will remain in place until 48 hours after the board announces the outcome of its meeting.
Fresh capital plan follows the Rs 926 crore IPO completed earlier this year. The public issue included a fresh issue of Rs 850 crore, while existing shareholders sold shares worth around Rs 76 crore through the offer for sale component.
Kissht Reports Strong Growth
The proposed fundraise comes at a time when the business is reporting strong growth across key financial indicators. Operating revenue of Kissht rose 45% year-on-year to Rs 670 crore in the first quarter of FY27.
Profit during the quarter increased 58% year-on-year to Rs 95 crore. The company also reported a sharp rise in assets under management, with AUM climbing 61% to Rs 8,001 crore during the quarter.
The numbers point to continued expansion in the lending business, although the proposed fundraise will still require approval through the prescribed corporate and regulatory process. The company has not yet stated how any new capital would be deployed.
Stock Gains After Listing
OnEMI shares made their market debut in May at Rs 190 on the NSE and Rs 191 on the BSE, compared with an IPO issue price of Rs 171. The listing represented a premium of more than 11% over the issue price.
Since the listing, the stock has gained more than 72% and was trading at around Rs 329, according to the figures provided. At that level, the company has a market capitalisation of about Rs 5,830 crore.
The strong movement in the stock has given OnEMI a significantly higher market value within a few months of its public debut. The proposed fundraise will now be watched for its size, pricing and the type of securities the board eventually approves.
What is Kissht
Kissht is a digital lending platform operated by OnEMI Technology Solutions. The business was founded in 2015 by Ranvir Singh and Krishnan Vishwanathan and focuses on providing digital credit to consumers and businesses. Its platform supports products such as unsecured personal loans, business loans and secured loans including loan against property.
Kissht uses technology for customer acquisition, credit assessment, loan processing and servicing. It also works with financial institutions and lending partners for loan origination and related services. Its NBFC subsidiary, Si Creva Capital Services, is part of the lending structure.
Company has built its business around digital access to credit, particularly for borrowers seeking smaller-ticket financing. Its technology-led model allows customers to complete much of the lending process digitally, while the company works across both its own lending operations and partnerships with other financial institutions.
The September 17 board meeting will therefore be important for investors looking to understand the next stage of OnEMI growth following its recent IPO. Details such as the proposed amount, pricing and investor participation are likely to determine how the market views the fresh capital plan.
