Evaluating OnEMI Technology’s IPO: A Promising Prospect for Long-Term Investors?

OnEMI Technology Solutions, operating under the brand Kissht, is set to launch its IPO with plans to raise ₹850 crore through a fresh issue aimed at enhancing its lending subsidiary’s capital base, along with an additional ₹75.9 crore through an offer for sale. Post-IPO, the promoter’s stake will reduce from 35.2% to 24.8%. The company has seen impressive growth in asset under management (AUM) and customer numbers, but it faces challenges with a gross non-performing asset ratio of approximately 3% and a reliance on unsecured personal loans, which comprise around 94% of its total AUM. These factors may lead investors to exercise caution until more stability in financial metrics is observed following the listing.

Founded in 2016, OnEMI provides a variety of personal loans and loans against property with a focus on quick approvals and minimal paperwork. With over 28.7 lakh active customers and an AUM of ₹59,557 crore as of December 2025, the demographic profile of its customers reflects a young, financially active segment, with a median CIBIL score of 746. The market for digital lending in the mass market segment is projected to experience significant growth, estimated to reach ₹4.1 lakh crore by FY30. This promising outlook may attract attention, especially considering the company’s previous plan to raise ₹1,000 crore, which was adjusted due to better-than-expected internal accruals.

Financially, OnEMI has demonstrated robust growth, with its AUM increasing by 80% and net profit surging by 141% over the last two years. The company’s net interest margin has also improved, reaching 21% as of December 2025. OnEMI is valued with a price-to-book (P/B) ratio of 1.4 post-IPO. While it does not have direct listed peers, comparisons to similar finance companies suggest it is positioned competitively within its sector. Given the overall growth trends and market potential, the IPO represents both an opportunity and a risk for Indian investors, who may weigh the company’s growth prospects against its existing vulnerabilities.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)