A new fintech IPO, OnEMI Technology Solutions (Kissht), is opening between 30th April and 5th May. At a minimum investment of ₹14,877, it sits in a space that many investors are currently watching closely—digital lending.

But here’s where many investors pause. The industry is growing at nearly 30% CAGR, yet the company reports a Gross NPA of 2.90% and consistently negative cash flow from operations. That combination can feel confusing.

If you’ve ever looked at a fast-growing company and wondered whether growth alone is enough, this IPO raises exactly that question. Understanding the balance between opportunity and risk becomes essential before forming any view.

What this covers

• How OnEMI operates in India’s digital lending ecosystem
• Why the industry growth numbers look strong
• What the company’s financial volatility signals
• Key risks like unsecured lending and NPAs
• Important IPO details investors should be aware of

What Does OnEMI Technology Solutions Actually Do?

OnEMI Technology Solutions operates a digital lending platform under the brand Kissht. It provides personal loans, MSME loans, and loans against property through a largely app-based journey.

The platform manages the entire lifecycle:

• Customer acquisition
• KYC and onboarding
• Credit assessment
• Loan disbursal
• EMI collections

The company earns revenue in two ways:

1. Interest income from loans on its own books
2. Fees from partner lending institutions

This hybrid model allows it to scale while sharing risk with partners.

Why Is Digital Lending Growing So Fast in India?

The digital lending market in India has expanded from ₹1.3 lakh crore in FY20 to ₹2.9 lakh crore in FY25. It is projected to reach ₹8.4 lakh crore by FY30.

This growth is driven onboarding

• Increasing smartphone usage
• Rising demand from young, first-time borrowers

For many consumers, especially in tier-2 and tier-3 cities, digital lenders are often the first access point to formal credit.

OnEMI is positioned directly in this demand wave.

Financial Performance: Growth with Volatility

OnEMI’s financials show both recovery and inconsistency.

• FY25 revenue declined by around 20% compared to FY24
• However, 9MFY26 revenue has already surpassed FY25 by 17%
• Net profit for 9MFY26 reached ₹199.20 crore, higher than FY25’s ₹160.6 crore

At first glance, this suggests improving performance.

However, one metric stands out:
Consistently negative Cash Flow from Operations (CFO)

This means profits are not fully translating into actual cash generation.

In lending businesses, this can happen due to:

• High loan disbursements
• Delayed repayments
• Working capital pressures

Understanding this gap between profit and cash is important when evaluating sustainability.

Assumption vs Reality: Growth Equals Stability?

What most investors assume:
If a company operates in a fast-growing industry, its financial performance will naturally be stable.

What actually happens:
Digital lending businesses often face volatility due to credit risk, borrower behavior, and funding costs.

Why this matters:
Looking only at industry growth without understanding operational risks can lead to incomplete analysis.

Key Risks in the OnEMI IPO

The company’s risk profile is central to understanding its business.

1. High Unsecured Loan Exposure
Around 94.23% of AUM is unsecured.
This increases the possibility of defaults during economic stress.

2. Gross NPA at 2.90%
This indicates a portion of loans where repayment has been delayed.
Higher NPAs can impact profitability and investor perception.

3. Negative Operating Cash Flow
Raises questions around earnings quality and liquidity management.

4. Contingent Liabilities of ₹1,793 crore
These are potential obligations that may impact financials in the future.

5. Interest Rate Sensitivity
Changes in rates can affect borrowing costs and demand for loans.

Real-Life Scenario: Understanding the Model

Imagine Aman, a 27-year-old working professional in Bengaluru. He uses an app like Kissht to finance a smartphone and manage short-term expenses.

From his perspective, the process is simple and quick.

But from the lender’s side, scaling this across millions of users means managing repayment behavior, credit risk, and funding costs at scale.

Even a small increase in defaults can impact overall financial performance when loans are unsecured.

IPO Details at a Glance

The proceeds are primarily intended for capital infusion into its subsidiary and general corporate purposes.

Strengths vs Risks: A Balanced View

This comparison highlights that the company’s strengths are closely tied to its risks.

How Should Investors Think About This IPO?

OnEMI represents a broader trend in India’s fintech space.

The opportunity is clear:

• Growing digital lending demand
• Increasing credit penetration
• Technology-driven scalability

At the same time, the risks are equally visible:

• Credit quality concerns
• Financial volatility
• Dependence on capital and funding

This combination places the IPO in a category where outcomes depend heavily on execution and risk management over time.

Conclusion

The OnEMI Technology Solutions IPO reflects both the promise and complexity of India’s digital lending ecosystem.

The industry growth story is strong, and the company is positioned to benefit from it. However, factors like high unsecured exposure, elevated NPAs, and negative cash flow highlight the importance of careful evaluation.

For investors, understanding not just how fast a company grows, but how sustainably it operates, becomes the key to making informed decisions in opportunities like the OnEMI Technology Solutions IPO.