Chennai, Sep 08: Orange Retail Finance India Private Limited, an RBI-registered Non-Banking Financial Company , has successfully completed its first listed Non-Convertible Debenture issuance of INR 50 crore, marking its entry into the listed debt market. The issuance represents the first tranche under the Company’s INR 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, 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 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.
