Is OnEMI Technology Solutions IPO Good or Bad – Detailed Review

OnEMI Technology Solutions Limited’s IPO is set to open its initial public offering from April 30, 2026, to May 05, 2026. When considering applying for this IPO, potential investors might have questions about whether the OnEMI Technology Solutions IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive analysis of OnEMI Technology Solutions' IPO, covering its business operations and a fundamental analysis of its RHP to help you make an informed investment decision.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

OnEMI Technology Solutions IPO Review

OnEMI Technology Solutions Limited IPO is open for subscription from April 30, 2026, to May 05, 2026, with listing expected on May 08, 2026, on NSE and BSE.

The company is a technology-enabled lender in India, primarily offering digital loans through its mobile application under the brand "Kissht." It provides swift, accessible, and personalized credit solutions, including unsecured personal loans and secured loans against property (LAP). As of the nine months ended December 31, 2025, the company reported total income of Rs 1,583.93 crore, driven by its advanced AI/ML-driven underwriting models and a vast multi-channel customer acquisition strategy.

OnEMI Technology Solutions has served over 1.11 crore customers across India. The company focuses on the mass market segment, especially young and digitally savvy individuals often underserved by traditional banks. Promoted by Ranvir Singh and Krishnan Vishwanathan, the promoters maintain significant institutional knowledge with over 18 years of experience each in the financial services and consultancy sectors.

The company operates in the rapidly expanding Indian digital lending market. With the rise of digital public infrastructure like Aadhaar, UPI, and the Account Aggregator framework, OnEMI Technology Solutions is strategically positioned to capitalize on the increasing credit demand among middle-income and young consumers.

Recently, the company has successfully expanded its product suite to include secured lending (LAP), operating through 82 branches across seven states and one union territory.

Financially, OnEMI Technology Solutions shows rapid growth and robust profitability. Its Assets Under Management (AUM) grew at a CAGR of 79.53% between FY23 and FY25. For the nine months ended December 31, 2025, it reported a Profit After Tax (PAT) of Rs 199.27 crore, already exceeding the full-year PAT of FY25 (Rs 160.62 crore).

The company maintains healthy operational metrics, with a Return on Equity (RoE) of 23.51% and Return on Assets (RoA) of 8.48% as of December 31, 2025. OnEMI Technology Solutions intends to utilize the IPO proceeds primarily to augment the capital base of its subsidiary, Si Creva Capital Services Private Limited (an NBFC-Middle Layer), to meet future business requirements and onward lending.

Key strengths include its large customer base of over 6.37 crore registered users, a technology-first approach with proprietary LOS and LMS systems, and diversified funding sources across 47 lenders. Primary risks include a high concentration of unsecured loans (over 94% of AUM), regulatory risks associated with being an NBFC-driven business, and dependency on third-party partners.

The book-built issue consists of a Fresh Issue of up to Rs 850 crore and an Offer for Sale (OFS) worth Rs 76 crore, which will be received by the Selling Shareholders.

Shares are priced between Rs 162 and Rs 171 per share, with a minimum lot size of 87 shares.

What does OnEMI Technology Solutions do?

OnEMI Technology Solutions acts as a digital financial bridge. They use a smart mobile app called "Kissht" to help people get personalised loans without having to visit a traditional bank. Here is a simple breakdown of their operations:

• Using advanced AI technology, they offer a loan to a new user in less than 10 minutes.

• They focus on the younger within mass-market segments who might be ignored by big traditional banks.

• Everything from signing up to managing the loan is done right on the smartphone.

OnEMI Technology Solutions, through its subsidiary Si Creva, commands a strong presence in the digital lending segment, with an AUM of Rs 5,955.75 crore as of December 2025.

The company handles the entire life cycle of lending, from digital onboarding and e-KYC to automated credit underwriting and AI-driven collections. They leverage an API-first architecture that allows seamless integration with e-commerce platforms and loan aggregators.

OnEMI Technology Solutions Business Segments

OnEMI Technology Solutions serves the mass market through two main loan categories:

• Unsecured Personal Loans: Providing instant credit for consumption and business needs. This segment is the largest contributor to the company’s AUM, accounting for 94.23% as of December 2025.

• Loan Against Property (LAP): Offering secured loans to MSMEs and individuals for business expansion and working capital. This segment has scaled to 82 branches since its launch.

Key Operational Features

The company’s operations are supported by a scalable, cloud-native technology platform and a multi-tiered collection infrastructure. They utilize 39 specialized sub-models for risk assessment, ensuring over 85% of new users receive loan offers in under 10 minutes. CEO Ranvir Singh and CFO Krishnan Vishwanathan lead the company, leveraging their extensive expertise in data science and risk management.

What is the market opportunity for OnEMI Technology Solutions?

OnEMI Technology Solutions Limited operates within the Indian retail credit and digital lending industry. The sector is undergoing rapid transformation, driven by ambitious financial inclusion targets and the government’s push for a digital-first economy.

The mass-market retail credit outstanding in India is expected to grow from Rs 31.9 lakh crore in FY25 to Rs 77.4 lakh crore by FY30. Nationally, digital lending within this segment is projected to surge 7x to Rs 4.1 lakh crore by FY30, highlighting a massive runway for tech-led lenders.

Crucially, the segment remains high-growth as consumers transition toward instant, collateral-free credit for lifestyle upgrades and small business capital. Despite this potential, the industry faces persistent challenges, including data privacy concerns, evolving regulatory norms from the RBI, unsecured lending being a high-risk industry and the competition from traditional banks.

Industry Statistics are sourced from the OnEMI Technology Solutions Limited Red Herring Prospectus (RHP) dated April 25, 2026.

Is OnEMI Technology Solutions Limited Profitable?

Note: The figures for the period ended Dec 31, 2025, are for 9 months, and RoE and RoA are annualized for comparison.

• Total Income: The company's total income witnessed significant momentum, peaking at Rs 1,700.30 crore in FY24 before moderating to Rs 1,352.69 crore in FY25. This fluctuation reflects a strategic pivot toward high-quality customers and longer-tenure products, which temporarily slowed immediate revenue recognition but strengthened long-term asset stability.

• Net Interest Margin (NIM): NIM improved impressively to 23.78% in FY25 from 18.61% in FY23. Due to its presence in the unsecured lending market, the firm maintains high Net Interest Margins (NIMs). The margin expansion highlights the company's efficient pricing strategy and the successful cross-selling of credit products to a growing repeat customer base.

• Cost to Income Ratio: Efficiency has improved as the business scales. The ratio dropped from 65.82% in FY23 to 54.30% in FY25, indicating that OnEMI is successfully leveraging its technological infrastructure to manage higher volumes without a linear increase in operating costs.

• Profit After Tax (PAT): PAT showed a robust recovery, rising from Rs 27.67 crore in FY23 to Rs 197.29 crore in FY24, fuelled by a data-driven approach that reduced credit losses. In the first nine months of FY26, the company recorded a PAT of Rs 199.27 crore, already surpassing the previous full year.

• Return on Equity (RoE): The company’s capital efficiency is a standout, with an RoE of 23.51% in 9M FY26. This is a substantial improvement over the 6.93% reported in FY23, demonstrating a highly effective deployment of shareholder funds.

• Return on Assets (RoA): OnEMI delivers best-in-class asset efficiency, with RoA reaching 12.85% in FY24 and remaining healthy at 8.48% in 9M FY26, significantly higher than traditional NBFC peers.

Financial figures are sourced from the OnEMI Technology Solutions Limited Red Herring Prospectus (RHP) dated April 25, 2026.

Strengths and Risks of OnEMI Technology Solutions IPO

Let's examine the strengths and weaknesses to determine whether the OnEMI Technology Solutions IPO is good or bad for investors.

Strengths

• Distinctive Multi-Channel Acquisition: Uses a mix of digital marketing, "Credit QR" merchant partnerships (52,396 active merchants), and e-commerce integrations to acquire customers efficiently.

• Advanced AI/ML Risk Management: The company utilizes in-house credit models built on 400+ variables, drawing insights from a database of more than 50 million approved loans, achieving superior default separation compared to traditional bureau scores.

• Scalable Proprietary Tech Stack: A fully in-house developed Loan Origination System, Loan Management System, and Automated Collection Systems allow for rapid innovation and a crash-free user experience rate of 99.32%.

• Diversified Funding Ecosystem: As of 31st December 2025, the company has access to capital from 47 lenders, including major banks and fund houses, providing a balanced liability profile.

• Strong Customer Retention: High stickiness in the mass market segment, with repeat customers contributing 50.62% of total AUM as of December 31, 2025.

Risks

• Unsecured Loan Concentration: 94.23% of the AUM is in unsecured personal loans, which are susceptible to higher credit risks and lower recovery rates during economic downturns.

• Interest Rate Volatility: The company is exposed to interest rate risk on its borrowings. If it is unable to pass on increased borrowing costs to its customers, its net total income and margins could be adversely affected.

• Regulatory Sensitivity: As a fintech operating through an NBFC subsidiary, it is subject to strict RBI oversight. Changes in risk-weighting or digital lending guidelines could impact growth.

• Technology Infrastructure and System Failures: Any interruptions in the availability of the digital platform due to hardware or software defects, cyberattacks, or infrastructure failures could damage the company's reputation and result in customer loss.

• Dependency on Third-Party Lending Partners: A significant portion of the company’s total AUM, around 48.87% as of December 31, 2025, is attributable to off-book loans facilitated through partnerships with third-party financial institutions. Any premature termination or non-renewal of these lending arrangements could materially and adversely affect the company's operations and revenue.

Strategies of OnEMI Technology Solutions IPO

• Deepening Mass Market Engagement: Focused on deepening relationships with the existing customer base while acquiring high-quality new users to cement leadership in the mass market segment.

• Continuous Credit Model Refinement: Sustaining growth and profitability by regularly enhancing AI/ML underwriting models to improve approval rates and pricing precision.

• Forefront of Technology Innovation: Leveraging emerging tools like Generative AI and advanced ML to drive efficiencies across customer onboarding, servicing, and collections.

• Optimizing Cost of Funds & Operating Leverage: Delivering superior profitability by securing competitive funding rates at scale and capitalizing on existing infrastructure to drive non-linear growth.

• Comprehensive Financial Platform Expansion: Building a full-stack ecosystem by scaling secured lending (LAP) and diversifying into non-lending products like life and auto insurance.

OnEMI Technology Solutions IPO vs. Peers

OnEMI Technology Solutions Limited demonstrates financial efficiency and operational health that compares favourably with its listed industry peers, including Bajaj Finance Limited, Cholamandalam Investment & Finance Company Limited, HDB Financial Services Limited, and SBI Cards & Payment Services Limited.

• Profitability: OnEMI Technology Solutions achieves a best-in-class RoA of 7.14% in FY25, significantly outperforming larger peers like Bajaj Finance (4.6%), SBI Cards (3.10%), and HDB Financial (2.16%), highlighting high earning efficiency relative to its asset base.

• Asset Quality Leader: With a Net NPA of just 0.25% in FY25, OnEMI Technology Solutions maintains superior portfolio health compared to traditional NBFC giants like Bajaj Finance (0.56%), Cholamandalam (2.63%), HDB Financial (0.99%), and SBI Cards (1.46%).

• High Capital Buffer: The company maintains a healthy Capital Adequacy Ratio (CRAR) of 25.18% as of March 2025, providing a stronger capital cushion for growth and risk absorption than many of its listed peers.

Objectives of OnEMI Technology Solutions IPO

The offering consists of a total book-built issue, which includes a Fresh Issue of Rs 850 crore and an Offer for Sale of Rs 76 crore, with the Selling Shareholders receiving the proceeds in this IPO.

The company will primarily use the proceeds from the fresh issue for:

• Augmenting the capital base of its subsidiary, Si Creva, with Rs 637.5 crore to support future onward lending and growth.

• General Corporate Purposes: Rs 212.5 crore.

OnEMI Technology Solutions IPO Details

IPO Dates

OnEMI Technology Solutions IPO will be open for subscription from April 30, 2026, to May 05, 2026. The allotment of shares to investors will take place on May 06, 2026, and the company is expected to be listed on the NSE and BSE on May 08, 2026.

IPO Issue Price

OnEMI Technology Solutions is offering its shares in the price band of Rs 162 to Rs 171 per share. This means you would require an investment of Rs 14,877 per lot (87 shares) if you are bidding for the IPO at the upper price band.

IPO Size

OnEMI Technology Solutions is launching an IPO consisting of a mix of fresh issues and offers for sale (OFS) totalling approx 5.41 crore shares. The total value of the issue is worth Rs 926 crore.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on May 06, 2026, through the registrar's website, Kfin Technologies Limited, BSE, NSE, or through their stockbroker platform.

IPO Listing Date

The shares of OnEMI Technology Solutions are expected to be listed on the NSE and BSE on May 08, 2026.

IPO Application Link

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