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IIFL Home Finance to raise nearly ₹3,000 crore through bond issue: Report | Mint

LivemintLivemint · 1y ago
IIFL Home Finance to raise nearly ₹3,000 crore through bond issue: Report | Mint
Medial

- IIFL Home Finance plans to raise approximately ₹3,000 crore through a public issue of bonds. - The lead managers for the bond issue are Trust Investment Advisors and IIFL Securities, both rated AA by Crisil and India Ratings. - The details of the bond issue have not been finalized yet. - IIFL Finance is aiming to raise ₹10,000 crore through debt between October and March to recover from the RBI's ban on issuing gold loans. - The RBI recently lifted the ban on IIFL Finance's gold loan business, resulting in a surge of over 12% in the company's shares. - HSBC upgraded IIFL Finance stock to 'hold' from 'reduce' after the RBI's decision, with a higher target price of ₹540, and increased its earnings per share estimates.

MobiKwik Xtra suspends ‘anytime withdrawals’; draws flak from users

EntrackrEntrackr · 1y ago
MobiKwik Xtra suspends ‘anytime withdrawals’; draws flak from users
Medial

After a crackdown on peer-to-peer (P2P) lending by the Reserve Bank of India (RBI), MobiKwik’s Xtra investors are facing troubles with withdrawals. The issue appears to have been triggered by the change in the withdrawal policy by the platform’s lending partner Lendbox. The change, however, was made without any prior notice, according to some users, who highlighted the problem on X. Many users on the microblogging platform also alleged that Xtra also transferred their investment to other borrowers without their knowledge. This appears strange as the new direction by the central bank doesn’t impact investment made by users. As mentioned above, the halt of anytime withdrawal is likely based on RBI’s master direction which forbids p2p lending as an investment product with features including tenure-linked assured minimum returns and liquidity options. MobiKwik’s Xtra allows users to earn up to 14% return on their investment. The app claims to have disbursed more than 300,000 loans worth Rs 7,373 crore to date. As per the RBI master direction, a lender is not allowed to invest more than Rs 50 lakh in a P2P platform and the maximum investment amount for a single borrower is Rs 50,000. “Due to the amendment of the P2P NBFC master directions issued by the Reserve Bank of India on August 16, 2024, Lendbox has restructured this product which has resulted in the stoppage of anytime withdrawal among other changes. Note that MobiKwik only acts as a channel partner for Lendbox,” said a MobikKwik spokesperson. “Customers will receive principal and interest, as repayments are made by the mapped borrowers. This amount will be available for withdrawal on the 12th of every month. They will be able to see the expected repayment schedule on the MobiKwik app in the next few days, added the spokesperson. Several users of BharatPe’s 12% Club, another p2p lending platform, also took to social media (X) to highlight the issue with anytime withdrawals. In July, ET reported that BharatPe has slowed down the process of onboarding new customers for 12% Club. A media report also said that onboarding by p2p lending platforms has declined by more than 90% since the RBI diktat. Platforms like Liquiloans have already stopped onboarding new users. LenDenClub, Faircent, 13Karat, and CRED Mint are some of the leading P2P lending platforms in India.

Upstox profit jumps 8X to Rs 190 Cr in FY24

EntrackrEntrackr · 9m ago
Upstox profit jumps 8X to Rs 190 Cr in FY24
Medial

Upstox profit jumps 8X to Rs 190 Cr in FY24 Following Rs 1,050 crore of revenue with profitability in FY23, Upstox delivered another notable year with 25% year-on-year growth during the fiscal year ended March 2024. Moreover, the profits jumped 8X to Rs 190 crore in the same period. Upstox’s revenue from operations grew to Rs 1,311 crore in FY24 from Rs 1,050 crore in FY23, according to the company’s press release. Upstox provides retail investors with investment options, including stocks, IPOs, futures & options (F&O), commodities, currencies, fixed deposits, peer-to-peer lending, government bonds, non-convertible debentures (NCDs), gold, and insurance. According to the company, it has a user base of 1.7 crore, with a significant 85% of its customers coming from tier II and III cities. “In FY24, we focused on innovation and high-impact growth, ensuring every investor and trader has the best tools at their fingertips. We are building a profitable, innovation-driven, and customer-first company that sets new benchmarks in security, speed, and simplicity” Ravi Kumar, CEO and Co-founder, Upstox said in the press release. In May 2024, the firm also entered the insurance distribution business. Upstox has raised over $200 million to date and was valued at $3.5 billion in its last fundraise. According to the startup data intelligence platform TheKredible, Tiger Global is the largest external stakeholder, holding 38.54%. The founding team including Ravi Kumar, Shrinivas Vishwanath, and Kavitha Subramanian own 36.12% of the company. Raghu Nathan Kumar, the company’s director, has 15% stake. In October 2024, the company delivered a 10X return to Ratan Tata in the partial buyback. Upstox's major competitors include Zerodha, Groww, Angel One, and PhonePe’s Share.Market. In FY24, Groww's revenue surged to Rs 3,145 crore, Zerodha reported Rs 8,370 crore in revenue and Rs 4,700 crore in profits. Angel One recorded Rs 4,280 crore in revenue in the previous fiscal year. According to the National Stock Exchange, Upstox ranks fifth in active users, with 2.89 million. Groww holds the top position, followed by Zerodha and Angel One.

Mswipe struggles with growth in FY24, reports Rs 46 Cr loss

EntrackrEntrackr · 10m ago
Mswipe struggles with growth in FY24, reports Rs 46 Cr loss
Medial

Mswipe struggles with growth in FY24, reports Rs 46 Cr loss Mswipe struggled with growth in the last fiscal year, as its operating revenue showed little to no increase. However, the Alpha Wave-backed company managed to slightly reduce its losses during the same period. Mswipe’s operating revenue saw a marginal growth of 1%, increasing to Rs 276.9 crore in FY24 from Rs 274.4 crore in FY23, according to its consolidated financial statement filed with the Registrar of Companies. The Mumbai-based firm is a B2B payment service provider offering POS solutions including cards, wallets, mobile payment apps, bank apps, contactless payments, and QR code payments. Transaction processing fees remained the largest revenue source for Mswipe which accounted for 63.09% of total operating revenue. This income grew 7.6% to Rs 174.7 crore in the last fiscal year. Support service fees grew by 4% to Rs 70.1 crore, while income from signup fees declined significantly by 44.4% to Rs 5 crore. Overall, the company’s total income, which includes non-operating revenue, rose by 1.39% to Rs 282.2 crore in FY24. On the expense front, IT expenses, the largest cost component, increased by 5.2% to Rs 164.2 crore, representing 50.16% of total expenses. Employee benefit costs decreased slightly by 2.2% to Rs 77.3 crore. Depreciation expenses rose by 7.1% to Rs 34.5 crore, while other expenses added another Rs 51.3 crore. In the end, Mswipe managed to bring total expenses down marginally by 0.3% to Rs 327.3 crore for the fiscal year ending March 2024. Mswipe reduced its net losses by 5.7%, bringing them down to Rs 46.2 crore in FY24. The company recorded a Return on Capital Employed (ROCE) of -16.94% and an EBITDA margin of -2.09%. On a unit basis, Mswipe spent Rs 1.18 to earn a rupee of operating revenue in FY24. As of March 2024, the firm reported Rs 262 crore in current assets, including Rs 157 crore in cash and bank balance. To date, the startup has raised over $125 million (more than Rs 1,000 crore) from several marquee investors, including Matrix Partners, B Capital, DSG Consumer Partners, Epiq Capital, UC-RNT, and Ola. In February, the Mumbai-based company received a payment aggregator (PA) license from the Reserve Bank of India (RBI) which enables Mswipe to offer full-stack payments to businesses. Mswipe seems to be following a trend of B2B firms in the fintech space focused on cutting losses over growth, in a bid to find a better model. In an increasingly competitive market with fast changing technology and cost dynamics, payment service providers are probably in the toughest corner. 2025 should be the year of reckoning for many.

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