Digital Lending Startups Delay IPO Plans Amid Sluggish Growth in FY25

India’s digital lending sector witnessed slower growth in FY25, with rising costs, regulatory pressures, and weaker credit quality prompting several fintech startups to put their IPO plans on hold. Diverging financial performances and cautious optimism define the industry’s outlook for the remainder of the year, as per Economic Times report.

IPO Plans Deferred as Financials Falter

According to the news report, players like Moneyview and Kissht are preparing regulatory filings, while Kreditbee is seeking board approval to convert into a public limited companyan essential step toward an IPO.

Despite these preparatory steps, many founders believe now may not be the right time to go public due to muted financial performance and shifting investor sentiment.

Mixed FY25 Performance Across Key Players

Financial results from FY25 paint a mixed picture across the digital lending space:

1. Kreditbee, based in Bengaluru and known for unsecured personal loans, reported a 10% growth in net profit rising to ₹221 crore from ₹200 crore in FY24 despite a strong 56% surge in operating revenue to ₹2,185 crore. A sharp 67% increase in expenses (₹1,890 crore) weighed heavily on its profitability.

2. Moneyview showed improvement in asset performance. The company’s return on average assets (ROAA) rose to 6.8% in the first 9 months of FY25, up from 6.65% in FY24. However, the startup slowed disbursement growth as a precautionary measure.

3. Fibe, a Pune-based lending platform offering personal and instant loans, outperformed its peers. It nearly doubled its net profit to ₹100 crore in FY25 (up from ₹55 crore in FY24), on the back of strong operating income growth to ₹1,033 crore.

4. On the other hand, Axio (formerly Capital Float) reported a decline in pre-provisioning profit to ₹24 crore in H1 FY25, from ₹81 crore in the full FY24, highlighting the pressure from rising expenses and a cautious lending approach.

Cautious Outlook on Public Listings

Despite the groundwork for IPOs being laid, industry experts and investors anticipate that most digital lenders will wait until at least the December quarter of 2025 before moving ahead with their public offerings, the report added.

Read More: Why Is the NSE IPO on Hold? Key Hurdles Behind the Delay.

Conclusion

FY25 has been a challenging year for India’s digital lending startups, marked by tightening margins, increased compliance requirements, and cautious growth strategies. While IPO aspirations remain alive, most players are choosing to focus on stabilising their financials before approaching the public markets.

As market conditions evolve, the coming quarters will reveal which fintechs are ready for prime time and which ones still have ground to cover.

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