Finance Buddha Unveils Rs 72 Crore IPO Plan to Fuel Hybrid Digital-Physical Expansion
Finbud Financial Services, parent of digital loan aggregator Finance Buddha, is launching an IPO to raise Rs 72 crore. The IPO will run from November 6 to 10 with a price band of Rs 140-142 per share. The company, backed by M.S. Dhoni, reported revenue of Rs 222 crore and profit after tax of Rs 8.50 crore in the previous fiscal year. Funds will be used for working capital, subsidiary investments, business development, marketing, and debt repayment. Finance Buddha operates a hybrid model, serving over 4 crore customers across 19,000 pin codes, with total loan disbursements exceeding Rs 50,000 crore. The company has already raised Rs 20.40 crore pre-IPO and plans to list on NSE's Emerge platform on November 13.
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Finbud Financial Services, the parent company of digital loan aggregator Finance Buddha, is set to launch its Initial Public Offering (IPO) to raise Rs 72 crore. The IPO, scheduled to open from November 6 to November 10, comes with a price band of Rs 140-142 per share.
Company Overview
Finance Buddha, founded in 2012 and backed by cricket icon M.S. Dhoni, has established itself as a significant player in the digital loan aggregation space. The company reported impressive financial figures for the previous fiscal year:
| Financial Metric | Amount (in Rs) |
|---|---|
| Revenue | 222.00 crore |
| Profit After Tax | 8.50 crore |
IPO Details and Utilization of Funds
The fresh equity offering aims to support various aspects of the company's growth strategy:
- Working capital requirements
- Investment in subsidiaries
- Business development initiatives
- Marketing efforts
- Repayment of existing debt
Operational Model and Market Reach
Finance Buddha operates on a hybrid model that combines digital marketing with a network of external agents. This approach helps customers access a variety of loan products:
- Personal loans
- Business loans
- Home loans
The company has partnered with numerous banks and Non-Banking Financial Companies (NBFCs) to offer these services. Some key statistics highlighting Finance Buddha's market presence include:
| Metric | Value |
|---|---|
| Customer Base | Over 4.00 crore |
| Geographic Reach | 19,000 pin codes |
| Total Loan Disbursements | Over 50,000.00 crore |
Growth Drivers and Future Outlook
Co-founder Parth Pande attributes the company's growth to rising consumer demand, particularly among young, credit-driven borrowers. This demographic trend is expected to continue fueling the company's expansion plans.
Pre-IPO Funding and Listing Details
Finance Buddha has already secured investor confidence by raising Rs 20.40 crore ahead of the public issue. The company's shares are slated to list on NSE's Emerge platform on November 13, providing an opportunity for public investors to participate in its growth story.
The upcoming IPO represents a significant milestone for Finance Buddha, as it seeks to capitalize on the growing demand for accessible financial services in India. By leveraging its hybrid model and expanding its reach, the company aims to strengthen its position in the competitive fintech landscape.
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