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In a move that signals confidence amidst market recalibrations, Indian fintech lender Kissht is proceeding with its ₹850 Crore Initial Public Offering (IPO). This decision comes at a time when several new-age companies are reassessing their public listing plans, highlighting Kissht’s strategic pivot to navigate revenue dips and regulatory challenges.
The company secured ₹277.78 Crore from anchor investors prior to the IPO’s opening, with shares allocated at ₹171 each, the upper end of its price band. This early backing, including significant participation from domestic mutual funds such as HDFC Mutual Fund and ICICI Prudential, underscores investor validation of Kissht’s market positioning, according to CEO Ranvir Singh.
Strategic Adaptation in Response to RBI Norms
Kissht’s financial performance in FY25 showed a decline in operating revenue by over 20% and a 18.6% drop in net profit compared to FY24. This downturn was largely attributed to the Reserve Bank of India’s (RBI) tightening of norms for unsecured loans, which increased capital costs for digital lenders. In response, Kissht deliberately chose to moderate loan disbursement and AUM growth to maintain profitability.
Despite the headline figures, the company reported a Profit After Tax (PAT) of ₹199.3 Crore on revenue of ₹1,569.9 Crore in the first nine months of FY26. Kissht’s active borrower base maintains a healthy median credit score of 746, with a significant portion earning between ₹25,000 and ₹75,000 monthly. The company’s Assets Under Management (AUM) has seen substantial growth, increasing 2.2 times from ₹2,604 Crore in March 2024 to ₹5,956 Crore in December 2025.
Diversification and Technology as Growth Levers
The ₹850 Crore fresh issue from the IPO is earmarked for expanding Kissht’s AUM, primarily through its own NBFC balance sheet. This strategy aims to provide greater control over underwriting standards and loan pricing. Key to its growth strategy is diversification in customer acquisition and product mix, supported by scalable technology investments.
Kissht is expanding its offerings beyond unsecured lending, with a growing focus on Loans Against Property (LAP), which currently contributes about 5% to revenue. The company is also exploring cross-selling health insurance to enhance customer lifetime value. Continued investment in automation, underwriting algorithms, and customer interfaces is expected to reduce operating costs and improve margins.
“Repeat usage and cross-sell opportunities are likely to remain important drivers of growth for us. Plus, continued investments in technology and underwriting are expected to improve operating efficiency and margins over time,” stated CEO Singh.
Navigating the Regulatory Landscape
The fintech lender’s strategic shift aligns with the RBI’s increased regulatory scrutiny on digital lending practices. Singh views regulation as a necessary evolution that enhances compliance and borrower quality, potentially benefiting companies with robust governance frameworks.
Kissht’s IPO enters a complex market, with other fintechs like PhonePe delaying their listings. The company’s decision to proceed, coupled with share buybacks by its management, signals strong conviction in its growth trajectory and operational resilience.
The success of Kissht’s IPO will be closely watched as it contends with a competitive landscape, including new entrants like Mobikwik and the potential disruption from Jio Financials. The company’s ability to sustain AUM and revenue growth while maintaining asset quality and profitability will be critical.
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