First tranche of ₹200 crore programme supported by UMI Capital; company targets ₹550 crore AUM in FY27
Orange Retail Finance India Private Limited, an RBI-registered NBFC rated ICRA BBB− (Stable), has completed its first listed Non-Convertible Debenture (NCD) issuance of ₹50 crore. The issue is the first tranche of its ₹200 crore listed NCD programme for FY27, supported by UMI Capital, and forms part of its broader ₹300 crore debt fundraising plan.
The fundraise will help Orange diversify its funding base as it targets ₹550 crore in AUM during FY27. The company is transitioning from its legacy two-wheeler lending portfolio towards a predominantly secured retail finance model focused on Gold Loans and MSME Loan Against Property (LAP), particularly 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.”
Orange’s gross NPA has declined from 9.3% in March 2024 to approximately 2.1–2.8% currently, while CRAR stands at 34%. Women account for 35% of its borrower base, with the company targeting a doubling of its women borrowers.
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 company aims to scale AUM from ₹410 crore to ₹3,000 crore by FY2031.
