The Securities and Exchange Board of India (SEBI) has granted approval for OnEMI Technology Solutions, the operator of digital lending platform Kissht, to proceed with its ₹1,000 crore initial public offering.

The filing follows a strategic pivot in the fiscal year ending March 2025, where the company intentionally moderated its hyper-growth to prioritize loan quality and longer-tenure products. This approval serves as a definitive regulatory signal: the Indian “Buy Now, Pay Later” (BNPL) and digital credit model has matured enough to withstand public market scrutiny, even as the Reserve Bank of India (RBI) maintains tight oversight on unsecured lending.

The Situation: Decoupling Growth from Risk

Kissht’s financial trajectory in FY25 reveals a calculated trade-off. While operating revenue fell 20% to ₹1,337 crore from ₹1,674 crore in FY24, the company’s asset quality improved significantly. Net Non-Performing Assets (NNPA) dropped to 0.25%, a best-in-class metric that outshines established giants like Bajaj Finance. The company’s Assets Under Management (AUM) reached ₹4,087 crore by March 2025, supported by a shift where 98% of the portfolio now consists of loans with tenures exceeding six months.

The IPO structure includes a ₹1,000 crore fresh issue and an offer-for-sale (OFS) of 8.8 million shares. Key exits or partial divestments are expected from long-term backers including Vertex Ventures and Endiya Partners. Proceeds are earmarked primarily to bolster the capital base of its NBFC subsidiary, Si Creva Capital Services, ensuring the 25.18% Capital Adequacy Ratio remains robust as the company scales its new secured lending (Loan Against Property) arm.

Why It Matters: Second-Order Market Effects

For the broader fintech ecosystem, Kissht’s public debut is a “live pricing” event for risk-adjusted returns.

  • The Multiple Re-Rating: Public markets will decide if digital lenders deserve a “fintech premium” or if they will be valued as high-velocity NBFCs. This will dictate the funding environment for late-stage peers like KreditBee and Stashfin.
  • Regulatory Validation: SEBI’s nod, following a period of intense RBI scrutiny on “First Loss Default Guarantee” (FLDG) and unsecured exposure, suggests that lenders with strong governance and proprietary underwriting (utilizing 400+ data points) are now viewed as systemic assets rather than speculative disruptors.
  • Product Evolution: The transition from 30-day “nano-loans” to longer-tenure and secured credit indicates that “Credit-as-a-Service” is the only sustainable path to profitability in India’s high-CAC environment.

Founder Action: The “Quality-First” Playbook

  • Audit Underwriting Logic: Shift from volume-based metrics to “Net NPA” and “Customer Lifetime Value.” Kissht’s 73% repeat borrower rate significantly lowers marketing costs—a critical factor for public market profitability.
  • Diversify Capital Sources: Reliance on external debt (which jumped 97.1% YoY for Kissht) is a vulnerability. Founders should prioritize building a “capital buffer” similar to Kissht’s 25% CRAR before seeking an exit.
  • Segment Pivot: Explore secured credit. Kissht’s move into Loan Against Property (LAP) acknowledges that unsecured lending alone may face a ceiling due to regulatory risk and capital intensity.