What Paisalo Digital does

Paisalo Digital Limited is an RBI-registered, publicly listed Indian non-banking financial company (BSE SmallCap ticker: PAISALO) founded in 1993 as S.E. Investments Ltd and rebranded in 2023. The company provides small-ticket credit to India's unbanked and underserved population through three product families: small income generation loans (Umeed, Pragati, Vikas), asset-backed and mobility loans including auto rickshaws, two-wheelers, and pre-owned cars (Gati, Raftaar, Do Ka Dum, Ready Steady Go), and small business loans (Udaan). Distribution operates through a Business Correspondent and co-lending model with major public sector banks — State Bank of India, Bank of India, Indian Overseas Bank, Bank of Baroda, and UCO Bank — supplemented by a digital lending app and doorstep collection, reaching approximately 1.4 crore (14 million) customers across 22 states via 4,872 touchpoints.

The company's lending platform is undergoing a transition to an AI-first architecture: the credit lifecycle (acquisition, underwriting, collections) is AI-enabled, the infrastructure runs on NVIDIA AI chips with immersion-cooled servers, and NLP processes over 350,000 multilingual customer calls daily. Alternative credit scoring using non-traditional data points is central to serving thin-file micro-borrowers. Paisalo also runs dedicated programs in electric vehicle financing (via an IREDA-backed ₹200 crore EV loan portfolio and a Mahindra Last Mile Mobility partnership) and offers Business Correspondent banking services under brands such as 'SBI-Paisalo CSP'.

The revenue model is interest income from the loan book (FY26 revenue ₹9,437 million, PAT ₹2,372 million, AUM ₹61,009 million) plus processing fees and co-lending economics. Paisalo reported net profit of ₹237.21 crore (+18.53% YoY) and revenue of ₹943.70 crore (+22.38% YoY) for FY26, with a Net NPA of 0.61% and Capital Adequacy Ratio of 35.8%. Funding is diversified across NCDs, commercial paper, an FCCB, and a maiden $15 million ECB, and the company has publicly targeted doubling AUM, revenue, and PAT within three years on the back of AI-driven scale.

Name

Paisalo Digital

Legal name

PAISALO DIGITAL LTD

Website

https://paisalo.in

Company type

Public

Founded year

1993

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Paisalo Digital is a publicly listed Indian NBFC providing small-ticket loans, asset-backed mobility financing, and micro-enterprise credit to approximately 14 million underserved borrowers across 22 states, leveraging AI-driven credit assessment and Business Correspondent partnerships with public sector banks.

Ownership category

akta.pro rank

Product category

Microfinance / NBFC Lending

NAICS

Funds, Trusts, and Other Financial Vehicles (525)

SIC

Finance Services (6199), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

P2P Small Business / SME Marketplace Lending (FSAKAHAC)

Keywords

• Microfinance lending
• Small business loans
• Mobility financing
• Financial inclusion
• Co-lending platform

Headquarters

HQ city

New Delhi

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Infrastructure, Marketing or Sales, Supply Chain

Revenue model

1. Interest Income from Loan Book: Core revenue stream from interest charged on loans disbursed to micro-entrepreneurs and underserved borrowers. The company reports AUM of ₹61,009 million and disbursements of ₹42,620 million for FY26.
2. Processing Fees and Charges: Fees charged for loan processing and other financial services provided through the BC network.
3. Co-lending Income: Revenue from co-lending arrangements with banks where Paisalo provides the distribution and servicing while banks provide low-cost funding.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels5 records

Core offering

Paisalo Digital is an RBI-registered non-banking financial company (NBFC) that provides unsecured and asset-backed loans to underserved micro-entrepreneurs, small business owners, and mobility vehicle buyers across rural and semi-urban India. Its portfolio spans small income generation loans (Umeed, Pragati, Vikas), mobility financing (Gati, Raftaar, Do Ka Dum, Ready Steady Go), and small business loans (Udaan), distributed through a Business Correspondent model with major public sector banks and an AI-driven digital lending platform.

Product overview

Paisalo Digital is an NBFC (Non-Banking Financial Company) offering a diversified lending portfolio through its High Tech: High Touch approach. The company operates across three primary lending categories: (1) Small Income Generation Loans including Umeed, Pragati, and Vikas products for underserved borrowers; (2) Asset-Backed/Mobility Loans including Gati (auto rickshaw), Raftaar (small vehicles), Do Ka Dum (two-wheelers), and Ready Steady Go (pre-owned cars); and (3) Entrepreneurial Loans through Udaan for small business owners. The company also provides a Co-Lending Platform and Business Correspondent Services in partnership with major public sector banks including SBI, Bank of India, and Indian Overseas Bank, enabling last-mile banking and credit delivery to rural and semi-urban India. Recent transformation to an AI-first strategy has embedded artificial intelligence across the entire credit lifecycle, processing over 350,000 customer calls daily through NLP-powered automation.

Differentiator

Problem solved

Functional benefit

Brands

• Umeed: Inclusive lending product promoting financial inclusion through accessible loans, bridging the gap between traditional institutions and underserved communities using alternative credit assessment beyond traditional metrics.
• Pragati
• Vikas
• Udaan
• Gati
• Raftaar
• Do Ka Dum
• Ready Steady Go
• SBI-PAISALO CSP

Products and services

• Umeed Loan

Quantifiable outcome

• AUM grew to ₹61,009 million with 16% YoY growth in Q3 FY26
• +5 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability5 records

Feature2 records

Partnerships

Seven partnerships are on record, tiered core.

• Indian Overseas BankcoreChannel Partner/ Reseller/ Distributor · 25 March 2026Paisalo Digital appointed as Business Correspondent partner for Indian Overseas Bank, expanding its banking-as-a-service platform. The partnership enhances last-mile banking services to rural and semi-urban customers across India, complementing existing BC partnerships with SBI and Bank of India.
• State Bank of India (SBI)coreChannel Partner/ Reseller/ Distributor · 27 June 2025Co-lending loan agreement signed with SBI, combining Paisalo's distribution reach with SBI's low-cost funding to serve the unbanked population. SBI holds approximately 6.83% stake in Paisalo Digital.
• Mahindra Last Mile Mobility LimitedcoreStrategic or Co-development Partner · 25 October 2024Partnership to enhance financing for electric commercial vehicles in India. The collaboration enables Paisalo to offer better financing options for Mahindra's electric vehicle range, supporting the transition to green mobility.
• Bank of IndiacoreChannel Partner/ Reseller/ DistributorNational Business Correspondent partnership with Bank of India for providing banking services to underserved populations across India.
• Bank of BarodacoreChannel Partner/ Reseller/ DistributorCo-lending partnership with Bank of Baroda to boost lending to MSMEs and offer small ticket loans through the partnership.
• UCO BankcoreChannel Partner/ Reseller/ DistributorCo-lending partnership and deployment of Business Correspondents with UCO Bank for agricultural and other priority sector lending.
• Punjab National Bank, Karnataka Bank, UCO BankcoreChannel Partner/ Reseller/ DistributorMultiple banking partnerships for co-lending and BC operations including Punjab National Bank, Karnataka Bank, and UCO Bank.

Scale indicators16 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Bajaj Finance: One of India's largest NBFCs offering consumer durable loans, small business loans, and rural lending with pan-India distribution. Comparable as a diversified Indian NBFC serving similar small-ticket lending and SME segments, though at significantly larger scale and broader product portfolio.
• IIFL Finance: Diversified Indian NBFC offering gold loans, home loans, SME loans, and microfinance. Broader incumbent with overlapping small business and microfinance lending verticals, though with significantly larger scale and more diversified product portfolio.
• Manappuram Finance: Large Indian NBFC with diversified lending portfolio including gold loans, microfinance, and vehicle financing. Comparable in serving underserved and small-ticket lending markets, though with primary focus on gold-backed lending.

Direct peers

• Muthoot Microfin: Indian microfinance institution focused on lending to women micro-entrepreneurs and small businesses in rural India. Highly comparable to Paisalo's small income generation loan segment, with similar customer segments, ticket sizes, and geographic focus on underserved populations.
• Spandana Sphoorty Financial: Indian microfinance company providing income generation loans to low-income women entrepreneurs across rural India. Direct competitor in microfinance space with comparable customer segments and small-ticket loan products.
• CreditAccess Grameen: Leading Indian NBFC-MFI focused on microfinance lending to underserved women in rural areas. Direct peer with similar microfinance lending model, customer base, and rural/semi-urban geographic footprint.
• Fusion Microfinance: Indian microfinance institution providing small-ticket loans to rural women micro-entrepreneurs. Comparable in customer segment, ticket size, and financial inclusion mandate, though smaller in scale than Paisalo.
• MAS Financial Services: Indian NBFC focused on SME and micro-enterprise lending through partnership/co-lending models with banks. Comparable in co-lending approach, SME focus, and target customer segments, though with somewhat different geographic and product mix.
• Satin Creditcare Network: Indian microfinance institution providing income generation loans and small business loans to underserved women and rural borrowers. Direct competitor with similar microfinance business model, customer segments, and pan-India rural presence.
• Five-Star Business Finance: Indian NBFC providing small business loans to self-employed and small business owners in semi-urban and rural India. Comparable in small business lending focus, customer segments, and tier-2/3 city geographic strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles19 records

Funding overview

Funding rounds5 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Paisalo Digital