Paisalo Digital Ltd IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is Brickwork Ratings India Private Limited.

About

Paisalo Digital Limited is a Reserve Bank of India-registered non-deposit-taking non-banking financial company (NBFC) classified as an NBFC-Middle Layer. The company primarily provides lending and financial services, with a focus on rural and semi-urban customers, women borrowers, micro-enterprises, and small and medium businesses. Its lending portfolio includes micro-enterprise loans for livelihood-oriented borrowers such as street vendors, tailors, and poultry businesses, as well as MSME and business loans for retailers, small traders and manufacturers. The company also provides correspondent banking services under agreements with three nationalised public sector banks, including account opening, deposits, withdrawals, remittances, pension products, micro-insurance and enrolment in government-sponsored schemes. It also undertakes partnership-based co-lending arrangements with financial institutions. As of March 31, 2026, the company operated across 22 states and Union Territories through 422 branches, 3,381 distribution points, and 1,496 customer service points. It was incorporated in 1992 and is headquartered in India. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For the purpose of onward lending, financing, and repayment of interest and principal of existing borrowings of the company — at least 75% General corporate purposes — maximum up to 25 percent of the net proceeds.;

Pros and Cons

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As of March 31, 2026, Paisalo Digital had 5,299 touchpoints across 22 states and Union Territories, comprising 422 branches, 3,381 distribution points and 1,496 customer service points. Around 88.62% of its branches were located in non-metropolitan cities, with 54.98% of branches concentrated in the northern region.

The company has a technology-enabled lending infrastructure that includes AI-based optical character recognition, AI-enabled credit underwriting, automated documentation, UPI-based QR payments, and AI-enabled collection calling and messaging. During FY26, its AI-enabled onboarding platform processed approximately 1.60 lakh loan applications per quarter, and its AI-based OCR system processed approximately 2.34 lakh document scans per quarter.

Paisalo Digital reported a consolidated AUM of Rs 6,100.90 crore as of March 31, 2026, up from Rs 5,232.85 crore in the previous fiscal. Its customer base also increased to approximately 160 lakh customers in FY26 from 90 lakh in FY25.

The company reported a consolidated collection efficiency of 98.50% as of March 31, 2026, with 88% of collections received through digital channels. Its consolidated GNPA and NNPA stood at 0.76% and 0.61%, respectively, as of the same date.

The company has co-lending arrangements with five public sector banks under the RBI framework for priority sector lending. Under these arrangements, Paisalo Digital generally retains 20% of each loan on its books while partner banks fund the remaining portion, allowing it to originate, service, and collect loans without bearing the entire loan exposure.

Paisalo Digital reported a consolidated capital adequacy ratio of 35.84% and a liquidity coverage ratio of 833% as of March 31, 2026, compared with regulatory requirements of 15% and 100%, respectively. Its consolidated net worth stood at Rs 1,792.98 crore as of the same date.

The company has received credit ratings of IVR AA/Stable Outlook and BWR AA/Stable for its long-term and fund-based bank facilities, and IVR AA/Stable Outlook and BWR AA/Stable for its non-convertible debentures. Its commercial paper has been rated IVR A1+ and BWR A1+.

Paisalo Digital Ltd

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