Capital boost aims to support aggressive expansion in consumer lending

Mumbai, July 28, 2025 Poonawalla Fincorp has received a ₹1,500 crore equity infusion from Adar Poonawalla’s Rising Sun Holdings. This funding raises the company’s net worth to ₹9,700 crore. The move will support a sharp retail expansion strategy. The non-banking finance company (NBFC) aims to widen its reach in unsecured consumer lending.

The capital infusion signals the company’s confidence in growing its consumer base. CEO Arvind Kapil, who joined from HDFC Bank last year, said, “This shows our strong belief in the company’s future.” He described the investment as a morale booster for employees and a market signal of leadership stability.

Poonawalla Fincorp is scaling up retail loans aggressively, especially through digital platforms.The firm already operates in over 80 locations and aims to boost weekly disbursements from 3,000 to 12,000 by year end. Kapil stressed that the NBFC is not upselling to existing clients but targeting entirely new borrowers a “new-to-market model,” he said.

The company’s digital strategy is central to this growth. Kapil said customers will experience seamless borrowing via digital journeys without in-person interaction. He added, “We’re distributing only to new borrowers, not just re-selling to existing ones.” The approach aligns with the company’s vision of technology-led financial inclusion.

Despite pressure in the unsecured lending space, Kapil said this is “the best time to lend,” especially to MSMEs. He cited increased GST data and digital records improving visibility into borrower credibility, thereby reducing risk.

Industry analysts believe the ₹1,500 crore infusion reflects investor faith in India’s retail credit market. The capital arrives as NBFCs reassess credit growth amid rising defaults in unsecured personal loans.However, Poonawalla Fincorp’s digital-first approach and clear customer segmentation may provide a cushion against these headwinds.

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