Strategic Partnership for Financial Inclusion
Paisalo Digital has formalised a strategic partnership with LoanKhata to provide formal credit to underserved borrowers. This ₹1,000 Crore facility focuses on the MSME and micro-enterprise sectors, where credit demand remains high. The agreement follows a 20/80 funding model, with LoanKhata managing 20% of the loan book.
This collaboration is designed to enhance borrower acquisition in semi-urban and rural India by leveraging LoanKhata's retailer network alongside Paisalo’s established underwriting and collection systems. The initiative reinforces Paisalo’s transition toward an AI-enabled, distribution-led growth platform focused on responsible lending practices.
Distribution Synergy and Reach
- Paisalo has expanded from 1,052 touchpoints in FY23 to 5,995 touchpoints as of Q1 FY27
- The network includes 424 branches, 3,997 distribution points, and 1,574 business correspondents
- LoanKhata provides access to a customer base exceeding 90 million underserved individuals
- Asset-light distribution model enables deeper borrower access through existing retailer infrastructure
- Combined reach strengthens sourcing and customer engagement across 23 states and UTs
Management Perspective on Scaling Growth
By combining LoanKhata's extensive network of over 1,00,000 retailer/CSP touchpoints and access to more than 90 million customers with Paisalo's 5,995 touchpoints, technology-enabled underwriting, digital onboarding and collection capabilities, we are creating a scalable operating model to serve a larger base of eligible MSME and micro-enterprise borrowers across India.
Financial Performance and Industry Context
The company reported a 19.01% YoY increase in quarterly revenue to ₹260.29 Crore, with net profit rising nearly 30% to ₹61.31 Crore. Market performance has been strong, with the stock delivering a triple-digit return over the past year. Paisalo maintains high efficiency with an operating profit margin of 77.65%.
Promoter confidence is reflected in a 4.97% increase in their holding during the latest quarter. The co-lending model allows the company to maintain a pristine asset quality focus through disciplined underwriting while achieving rapid scale in a sector showing robust credit demand.
