Company targets ₹550 crore AUM this fiscal year, backed by a ₹300 crore debt fundraising plan and transition to secured retail finance
Chennai, India (9th
September): Orange Retail Finance India Private
Limited (“Orange” or “the Company”), an RBI-registered Non-Banking Financial
Company (NBFC) rated ICRA BBB− (Stable), has successfully completed its first
listed Non-Convertible Debenture (NCD) issuance of ₹50 crore, marking its
entry into the listed debt market. The issuance represents the first
tranche under the Company’s ₹200 crore listed NCD programme for FY27,
supported by UMI Capital, and forms part of Orange’s broader ₹300 crore
debt fundraising plan for the financial year.
The fundraise marks an important step in
Orange’s strategy to diversify its funding base and build a more scalable,
institutional capital-raising platform as it targets ₹550 crore in AUM
during FY27. The capital-raising programme comes alongside the Company’s
strategic transition from its legacy Two-Wheeler lending portfolio towards
a predominantly secured retail finance model led by Gold Loans and MSME
Loan Against Property (LAP), with a focus on expanding its presence across
semi-urban and rural South India.
Saravanan Kandan, Chief Financial
Officer, Orange Retail Finance India Private Limited, said: “This is the first of several steps to widen our funding base
and lower our long-term cost of capital. The ₹200 crore funding programme,
provides us with a structured pathway to access institutional debt capital as
we scale, while keeping us disciplined on asset-liability management as we work
towards our ₹550 crore AUM target.”
The strategic transition has been
accompanied by a sustained improvement in portfolio quality, with the
Company’s gross NPA declining from 9.3% as of March 2024 to
approximately 2.1–2.8% currently, while its capital adequacy ratio
(CRAR) stands at 34%. Orange’s disbursements are concentrated in rural
and Tier-2 markets across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana,
where a significant proportion of its customers are first-time users of formal
credit.
Gold Loans are expected to account for a
substantial share of incremental AUM, alongside MSME LAP. The Company’s focus
on underserved markets also has a strong financial inclusion dimension,
with women currently accounting for 35% of its borrower base.
Orange intends to double its women borrower base as it scales.
The Company has strengthened its senior
management team with the appointment of a Chief Financial Officer, Chief
Business & Operations Officer and Chief Risk Officer, bringing over 75
years of combined experience across banking, NBFCs and development finance
institutions. The leadership team will support the Company’s transition towards
a diversified, secured retail finance model, while strengthening risk,
financial and operational capabilities.
As part of its five-year roadmap, Orange
aims to scale AUM from ₹410 crore to ₹3,000 crore by FY2031, supported by
secured lending, technology and stronger financial controls.
Ebenezer Daniel G, Founder, Managing
Director & CEO, Orange Retail Finance India Private Limited, said: “Completing our first listed NCD is an important milestone
in Orange’s transition to a more diversified, capital markets-linked funding
base. The transaction reflects the confidence debt investors place in the
leadership team we have built for scale and in a growth plan anchored in
secured, financially inclusive lending.”
The successful completion of the first
listed NCD issuance represents an early milestone in Orange’s broader
transformation from a legacy Two-Wheeler lender towards a secured,
financially inclusive retail finance franchise, while building the
diversified funding architecture required to support its long-term
growth.
About Orange Retail Finance India
Private Limited
Orange Retail Finance India Private Limited
(ORFIL) is an RBI-registered Non-Banking Financial Company (Middle Layer)
headquartered in Chennai, serving semi-urban and rural customers across Tamil
Nadu, Andhra Pradesh, Karnataka, Telangana and Kerala through 58 branches.
ORFIL's core products are MSME Loan Against Property, Gold Loans and Affordable
Housing Loans, supported by its proprietary technology platforms, ORFLend (loan
origination and servicing) and FinMobi (customer application). The Company is
rated ICRA BBB− (Stable) and reported a capital adequacy ratio of 41% as of its
latest rating review.
Media Contact
Saravanan K | Chief Financial Officer
Orange Retail Finance India Private Limited
saravanan.k@orangeretailfinance.com
Pramod Kamble | Assistant Account Manager
Adfactors PR
pramod.kamble@adfactorspr.com
| 8888360559
Anushka Mehta | Senior Account Executive
Adfactors PR
anushka.mehta@adfactorspr.com |
9167944956