Orange Retail Finance Eyes ₹550 Crore AUM Following ₹50 Crore NCD Issuance

Wednesday, Sep 09, 2026 17:59:19 |

Company targets ₹550 crore AUM this fiscal year, backed by a ₹300 crore debt fundraising plan and transition to secured retail finance

Chennai, India (9th September): Orange Retail Finance India Private Limited (“Orange” or “the Company”), an RBI-registered Non-Banking Financial Company (NBFC) rated ICRA BBB− (Stable), has successfully completed its first listed Non-Convertible Debenture (NCD) issuance of ₹50 crore, marking its entry into the listed debt market. The issuance represents the first tranche under the Company’s ₹200 crore listed NCD programme for FY27, supported by UMI Capital, and forms part of Orange’s broader ₹300 crore debt fundraising plan for the financial year.

The fundraise marks an important step in Orange’s strategy to diversify its funding base and build a more scalable, institutional capital-raising platform as it targets ₹550 crore in AUM during FY27. The capital-raising programme comes alongside the Company’s strategic transition from its legacy Two-Wheeler lending portfolio towards a predominantly secured retail finance model led by Gold Loans and MSME Loan Against Property (LAP), with a focus on expanding its presence 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.”

The strategic transition has been accompanied by a sustained improvement in portfolio quality, with the Company’s gross NPA declining from 9.3% as of March 2024 to approximately 2.1–2.8% currently, while its capital adequacy ratio (CRAR) stands at 34%. Orange’s disbursements are concentrated in rural and Tier-2 markets across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana, where a significant proportion of its customers are first-time users of formal credit.

Gold Loans are expected to account for a substantial share of incremental AUM, alongside MSME LAP. The Company’s focus on underserved markets also has a strong financial inclusion dimension, with women currently accounting for 35% of its borrower base. Orange intends to double its women borrower base as it scales.

The Company has strengthened its senior management team with the appointment of a Chief Financial Officer, Chief Business & Operations Officer and Chief Risk Officer, bringing over 75 years of combined experience across banking, NBFCs and development finance institutions. The leadership team will support the Company’s transition towards a diversified, secured retail finance model, while strengthening risk, financial and operational capabilities.

As part of its five-year roadmap, Orange aims to scale AUM from ₹410 crore to ₹3,000 crore by FY2031, supported by secured lending, technology and stronger financial controls.

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 successful completion of the first listed NCD issuance represents an early milestone in Orange’s broader transformation from a legacy Two-Wheeler lender towards a secured, financially inclusive retail finance franchise, while building the diversified funding architecture required to support its long-term growth.