Kissht IPO

The company has a substantial reach, serving 9.16 million customers from 53.23 million registered users as of March 31, 2025. Its customers have grown at an annual rate of 19.5% from 6.41 million in FY23 to 9.16 million in FY25.

It has shown impressive growth in its loan portfolio, with Assets Under Management (AUM) increasing from ₹1,268 crore to ₹4,087 crore between FY23 and FY25, representing a CAGR of 79.5%.

The company maintains robust financial health, recording the lowest Net Non-Performing Assets (NNPA%) of 0.25% among its peers in FY25, along with the highest Provisioning Coverage Ratio (PCR%). Net NPA of 0.25% means that out of every ₹100 the bank lends, only 25 paise is at real risk of not coming back.

Kissht has ₹25.18 of capital for every ₹100 of risk-weighted assets (CRAR 25.18%). This is higher than peers like Bajaj Finance (21.93%) and SBI Cards (22.90%), meaning Kissht has a stronger cushion to absorb potential losses and is well-capitalized.

A substantial 73.3% of its Assets Under Management (AUM) as of March 31, 2025, is from repeat customers. This demonstrates strong customer loyalty, which can reduce customer acquisition costs and drive sustainable revenue growth.

Kissht's business uses a balanced funding approach, mixing on-book and off-book loans. They work with a diversified base of 38 lenders as of March 31, 2025. This strategy helps them achieve capital efficiency, support scalable growth, and manage concentration risk effectively.

A significant portion of its loans, 98.15% of its total AUM as of March 31, 2025, consists of unsecured loans, making it vulnerable to reduced demand and potentially impacting its business and financial results.

The company needs substantial capital for its operations. Any problems with getting funds or being unable to pay back debts could seriously harm its business, financial health, cash flows, and future prospects. As of March 31, 2025, their total borrowings were ₹1,508 crore, which surged nearly 290% from ₹388 crore in FY25.

In FY25, Kissht’s AUM stood at ₹4,087 crore, which is just 7.32% of the AUM of even the smallest peer, SBI Cards and Payment Services, and also smaller compared to large listed players like Bajaj Finance and Cholamandalam Investment and Finance Company.

Kissht has a long-term credit rating of CRISIL BBB+ and Acuite A, which is lower than peers like Bajaj Finance (CRISIL AAA, CARE AAA, IND AAA, ICRA AAA) and SBI Cards (CRISIL AAA). This means Kissht is seen as moderately safe for lenders, while its peers are considered very low-risk borrowers with stronger creditworthiness.

The company targets young individuals in the mass market with a median CIBIL score of 746. These customers may be economically less stable, increasing vulnerability to defaults and potentially impacting its business and finances.

Operating in a heavily regulated financial industry, material changes in laws or regulations, including those affecting capital adequacy or provisioning for bad loans, could adversely affect its profitability or future financial performance.

Its data-driven risk models rely on the accuracy and completeness of information provided by customers. Misleading or incomplete data could impair credit assessment judgment and potentially lead to higher non-performing assets.