OnEMI Technology Solutions Ltd IPO
OnEMI Technology is a fintech platform providing EMI-based payment solutions for offline and online merchants. The IPO aims to raise ₹926 crore through a fresh issue and offer for sale.
Price band
₹162 – ₹171
Open date
28 April 2026
Close date
30 April 2026
Listing date
To be announced
Lot size
87
Issue size
₹926 crore
Company Overview
OnEMI Technology Solutions is a fintech company that enables merchants to offer EMI-based payment options to customers at the point of sale. The platform connects consumers, merchants, and lending partners (banks and NBFCs) to facilitate affordable instalment-based purchases.
Business Model
- Merchant network: 45,000+ merchant partners across India
- Lending partners: 15+ banks and NBFCs
- Products: No-cost EMI, low-cost EMI, Buy Now Pay Later, consumer durable loans
- Revenue model: Commission from lending partners + merchant subscription fees
- Technology: Proprietary underwriting engine with 95%+ automation rate
Financial Highlights
| Metric | FY24 | FY25 | FY26 (9M) |
|---|---|---|---|
| Revenue | ₹280 Cr | ₹420 Cr | ₹380 Cr |
| Revenue Growth | — | 50% | ~35% (annualised) |
| EBITDA | ₹18 Cr | ₹52 Cr | ₹55 Cr |
| EBITDA Margin | 6.4% | 12.4% | 14.5% |
| PAT | ₹5 Cr | ₹28 Cr | ₹32 Cr |
| Loan Disbursements | ₹4,200 Cr | ₹7,100 Cr | ₹6,800 Cr |
IPO Details
| Parameter | Details |
|---|---|
| Issue Type | Book Building |
| Fresh Issue | ₹500 crore |
| Offer for Sale | ₹426 crore |
| Price Band | ₹162 – ₹171 |
| Lot Size | 87 shares |
| Minimum Investment | ₹14,877 (at upper band) |
| Market Cap (post-issue) | ~₹4,800 crore |
| P/E (at upper band) | ~95x (FY26 annualised) |
| Lead Managers | ICICI Securities, Kotak Mahindra Capital |
Use of IPO Proceeds
- Technology and product development: ₹180 crore
- Merchant acquisition and expansion: ₹150 crore
- Working capital: ₹100 crore
- General corporate purposes: ₹70 crore
Strengths
- Large addressable market — India’s consumer lending market is ₹40+ lakh crore; EMI penetration at point-of-sale is still low
- Asset-light model — Company doesn’t lend from its own books; connects borrowers with lenders
- Network effects — More merchants attract more lenders and vice versa
- Revenue growth — 50% YoY revenue growth in FY25 demonstrates strong traction
- Improving profitability — Margins expanding as the platform scales
Risks
- High valuation — P/E of ~95x is expensive even for a growth fintech
- Regulatory risk — RBI tightening digital lending norms could impact the business model
- Competition — Competing with Bajaj Finserv, Pine Labs, and multiple BNPL players
- Concentration risk — Top 5 lending partners contribute ~60% of disbursements
- OFS component — ₹426 crore going to existing shareholders, not the company
Peer Comparison
| Company | Market Cap | P/E | Revenue Growth |
|---|---|---|---|
| OnEMI (at IPO) | ₹4,800 Cr | 95x | 50% |
| Bajaj Finance | ₹5,00,000 Cr | 30x | 25% |
| MobiKwik | ₹8,000 Cr | 120x | 40% |
| One 97 (Paytm) | ₹45,000 Cr | N/A (losses) | 20% |
Context
OnEMI Technology has an asset-light platform model in a growing market, while the IPO is priced at about 95x earnings. Post-listing price discovery and future disclosures will show how the market weighs growth, valuation, regulation, and competition.
Disclaimer: This is educational content, not investment advice. Please consult a SEBI-registered advisor before making investment decisions.