Paisalo Digital signs ₹1,000 crore co-lending MoU with LoanKhata
Paisalo Digital Ltd has signed an MoU with LoanKhata for a proposed ₹1,000 crore co-lending facility. The deal involves an 80-20 funding split and leverages LoanKhata's 100,000+ retailer network alongside Paisalo's 5,995 touchpoints. This partnership supports Paisalo's goal to double its AUM, income, and PAT over three years while expanding MSME credit access.
*this image is generated using AI for illustrative purposes only.
Paisalo Digital has entered a Memorandum of Understanding (MoU) with LoanKhata for a proposed ₹1,000 crore co-lending partnership. The agreement aims to expand financial access for MSMEs and micro-enterprises by combining Paisalo’s technology-led underwriting with LoanKhata’s extensive last-mile distribution network.
Partnership structure and funding
The co-lending facility envisages a participation structure where Paisalo funds 80% and LoanKhata funds 20% of each eligible loan. The partnership targets micro-enterprises and MSMEs across semi-urban and rural markets.
| Parameter: | Details |
|---|---|
| Deal type: | Co-lending arrangement (MoU) |
| Partner: | LoanKhata |
| Deal value: | ₹1,000 crore |
| Funding split: | Paisalo 80%, LoanKhata 20% |
| Target segment: | MSMEs and micro-enterprises |
| Growth targets: | Double AUM, income, and PAT over three years |
Distribution expansion
The partnership leverages complementary distribution engines. Paisalo has scaled its network from 1,052 touchpoints in FY23 to 5,995 touchpoints as per Q1 FY27, comprising 424 branches, 3,997 distribution points, and 1,574 business correspondents across 23 states. LoanKhata contributes a network of over 1,00,000 retailers with CSP registration and access to a customer base exceeding 90 million.
Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, stated that the partnership creates a scalable operating model to serve a larger base of eligible borrowers while maintaining disciplined underwriting and pristine asset quality.
Strategic rationale
The company views this move as part of its acceleration phase to scale its loan book and strengthen its technology-led lending model. Key strategic objectives include:
- Growth ambition: Supporting the three-year roadmap to double AUM, total income, and PAT.
- Last-mile reach: Combining Paisalo’s 5,995 touchpoints with LoanKhata’s retailer network.
- Asset-light scale: Enabling deeper borrower access through existing infrastructure.
- Risk management: Preserving credit discipline through disciplined underwriting and portfolio monitoring.
Historical Stock Returns for Paisalo Digital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.23% | -0.21% | -2.27% | +101.24% | +127.33% | +144.02% |
How will the 80/20 funding split impact Paisalo Digital's capital adequacy ratios and balance sheet leverage over the next three years?
What specific risk mitigation strategies will Paisalo implement to manage credit quality given LoanKhata's massive but potentially heterogeneous retailer network?
How does this ₹1,000 crore MoU compare to recent co-lending partnerships in the Indian NBFC sector in terms of scale and expected ROI?
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