Finbud Financial Services Limited IPO

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Finance Buddha, founded in 2012 and headquartered in Bangalore, is a leading retail loan marketplace and digital lending aggregator in India. The company connects borrowers with banks and NBFCs to provide personal loans, business loans, and home loans through both digital and agent-led channels.

Initially focused on retail lending distribution in South India, Finance Buddha has now expanded its operations pan-India, offering a seamless, end-to-end loan journey from discovery to disbursement. The platform is free for customers, while the company earns a commission from lenders upon loan disbursal.

Business Model

Finance Buddha operates through a hybrid business model combining both agent-led and digital lending channels—making it one of the few players in India with such a structure.

1. Agent-Led Channel

The company manages an extensive network of master and last-mile agents across India, ranging from small entrepreneurs to organized distribution partners. Agents source leads via telemarketing, advertisements, workplace kiosks, and referrals, perform initial borrower verification, and help customers compare loan options. This model delivers higher conversion rates since preliminary credit checks are already done before lender submission.

2. Digital Channel

The digital platform leverages data analytics, digital marketing, and proprietary technology to pre-qualify and process loan applications efficiently. Customers can apply for loans online, compare multiple offers, and receive instant decisions—creating a fast, paperless, and user-friendly experience. The company uses its tech-driven customer data for cross-selling and upselling, improving customer lifetime value.

Products and Offerings

Finance Buddha’s revenue primarily comes from three loan categories:

1. Personal Loans – Unsecured loans for salaried individuals (avg. ₹10 lakh ticket size), contributing 74.52% of FY25 revenue.
2. Business Loans – Unsecured loans for SMEs (avg. ₹20 lakh ticket size), accounting for 20.81% of FY25 revenue.
3. Home Loans – Secured loans for property purchase or mortgage, forming 2.95% of FY25 revenue

The company’s personal loan segment continues to dominate, supported by rising demand among salaried professionals in metro and Tier-2 cities.

Competitive Edge

i) Only major player with a true hybrid model combining agent and digital ecosystems.
ii) Extensive partner network with major banks and NBFCs.
iii) Tech-driven customer profiling for targeted loan matching and cross-selling.
iv) Efficient cost structure and low default exposure since it assumes no credit risk.
v) Nationwide reach with deep penetration beyond metro cities.

Objects of the Finbud Financial Services Limited IPO:

Company proposes to utilize the funds towards funding the following objects: 1. Working Capital Requirement (₹20.9 cr) 2. Investment In Wholly Owned Subsidiary i.e. LTCV Credit Pvt. Ltd. (₹15 cr) 3. Funding for Business Development and Marketing Activities (₹17.75 cr) 4. Prepayment/repayment of a portion of certain outstanding borrowings (₹4.03 cr) 5. General Corporate Purposes
DRHP of Finbud Financial Services Limited IPO
RHP of Finbud Financial Services Limited IPO

Finbud Financial Services Limited IPO Details:

Open Date: Nov 06 2025
Close Date: Nov 10 2025
Total Shares: 50,48,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 71.68 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 140-142 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 13 2025

Promoters And Management:

1. Parag Agarwal, CFO and Whole-Time Director, has nearly two decades of experience in investment management and financial services. A co-founder at Finbud since 2013, he oversees pan-India agent operations (excluding South India) and financial management. Previously, he worked with Avigo Capital Partners and Masan Group, handling key investments across manufacturing, infrastructure, and consumer sectors. He holds an MBA from SCMHRD, Pune. 2. Parth Pande, Whole-Time Director, brings 19 years of expertise in digital business management spanning banking, financial services, and technology. As co-founder of Finbud since 2012, he leads digital initiatives and product innovation. Earlier, at Citibank, he managed retail assets, loan portfolios, and large sales teams. He holds an MBA in Marketing from SCMHRD, Pune, and a BSc in Computer Science from Bangalore University. 3. Vivek Bhatia, Whole-Time Director, has over 25 years of entrepreneurial experience in financial services, retail distribution, and manufacturing. A co-founder at Finbud since 2012, he oversees South India operations, HR, and administration. Before Finbud, he ran a Citibank retail distribution firm and managed a manufacturing unit for hygiene paper products. He is a commerce graduate from St. Joseph’s College of Commerce.

Financials of Finbud Financial Services Limited IPO:

Particulars 4M FY 2025-26 FY 2024-25 FY 2023-2024 FY 2022-2023
Revenue from Operations (Cr) 85.76 223.28 190.23 135.47
EBITDA (Cr) 5.87 14.66 10.58 4.23
EBITDA Margins 6.85% 6.57% 5.57% 3.12%
PAT (Cr) 3.32 8.49 5.65 1.83
PAT Margins 3.88% 3.81% 2.97% 1.35%
ROCE 12.19% 32.11% 49.85% 24.91%
Trade Receivable Days 54 57 52 41
Trade Payable Days 8 7 24 23
Debt to Equity Ratio(In Times) 0.52 0.51 1.05 1.2
Operating Cash Flows (Cr) -2.49 -13.33 -2.09 2.68

Comparison With Peers:

Companies Revenue (in cr) EBITDA Margins PAT Margins ROCE D/E Ratio MCap (in cr) P/E
Finbud Financial Services Limited 223.28 6.57% 3.81% 32.11% 0.51 270.50 31.86
My Mudra Fincorp Limited 80.67 17.18% 11.17% 31.40% 0.07 105 11.6
BLS E-Services Limited 519 12% 11.37% 15.80% 0.01 1,592 28.8
PB Fintech Limited 4977 2% 7.09% 5.90% 0.05 83761 181

Lead Manager of Finbud Financial Services Limited IPO:

  1. SKI Capital Services Limited

Registrar of Finbud Financial Services Limited IPO:

  1. Skyline Financial Services Private Ltd

Discussion on Finbud Financial Services Limited IPO:

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