In a significant move to bolster its financial standing and expansion plans, Paisalo Digital Limited, the non-banking financial company (NBFC) partly owned by SBI Life Insurance, announced a successful fundraise of ₹188.5 crore. The capital was secured through listed issuances in the third quarter at an attractive annual return on investment (ROI) of 8.5%.
Strategic Fundraise to Enhance Financial Metrics
In a regulatory filing made on Tuesday, January 6, the company highlighted that this infusion of capital is poised to meaningfully reduce its overall cost of funds. This is a critical metric for any lending institution, as a lower cost of capital directly improves profitability and competitive pricing for loans. Furthermore, the funds will strengthen Paisalo's medium-term capital base and significantly enhance its lending capacity.
The company stated that this successful raise underscores its strong credit profile, disciplined risk management practices, and a robust balance sheet. It comes at a time when market dynamics are favoring NBFCs that demonstrate strong governance and prudent underwriting standards, positioning Paisalo as a potential beneficiary.
Deployment for Pan-India Expansion and Product Rollout
Paisalo Digital has outlined clear plans for deploying the newly raised capital. The proceeds will be channeled to support its pan-India expansion across 22 states and union territories. A key focus will be on deepening its 'High Tech–High Touch' distribution model, which blends technology with personalized service.
The NBFC also aims to accelerate the introduction of new lending products specifically designed for micro-entrepreneurs, self-employed individuals, and underserved income segments. With an existing network of 4,380 touchpoints and a rapidly growing customer base, Paisalo is strategically positioned to capture a larger share of India's formalizing MSME and income-generation credit market.
Shareholding Pattern and Stock Performance
As per the latest BSE data for the September quarter, SBI Life Insurance holds a 6.83% stake in Paisalo Digital, equivalent to over 6.21 crore shares. Foreign portfolio investors (FPIs) collectively held a significant 20.89% stake by the end of the second quarter of FY26.
On the trading front, the small-cap stock touched a 52-week high of ₹48.19 on January 17 and a 52-week low of ₹29.40 on June 20 last year. While the stock has declined by 22% over the past year, it has shown resilience with a 15% gain in the last six months. On the day of the announcement, January 6, the stock witnessed a minor dip of 1.5% during intraday trade.
This strategic fundraise equips Paisalo Digital with the necessary firepower to scale its operations efficiently while maintaining a healthy cost structure, aiming to bridge the credit gap for India's vital but often underserved entrepreneurial class.
