Finance Buddha Banks On Rising Credit Appetite, Hybrid Model For Expansion: Co-founder Pande

Finbud Financial Services, a digital loan aggregator backed by M.S. Dhoni, is betting on its hybrid 'phygital' model and the momentum of rising consumer demand among young, credit-driven borrowers to accelerate its next phase of growth, its co-founder Parth Pande said.

To fuel its growth, Finbud Financial Services, the parent company of Finance Buddha, is set to raise around Rs 72 crore through its upcoming initial public offering (IPO).

The issue, entirely a fresh equity offering with no offer-for-sale component, will open for subscription on November 6 and close on November 10, with a price band of Rs 140-142 per share.

According to Pande, the proceeds from the IPO will be used for working capital requirements, investment in its subsidiary, business development and marketing initiatives, and debt repayment.

The company reported revenues of Rs 222 crore in FY25 and a profit after tax of Rs 8.5 crore.

"The company's growth will be supported by rising consumption and a changing demographic landscape, as more young consumers are opting for loans," Pande told PTI.

Founded in 2012 by Vivek Bhatia, Parth Pande, and Parag Agarwal, the Bengaluru-based firm helps customers access personal, business, and home loans from banks and non-banking financial companies.

The company follows a hybrid strategy combining digital marketing with a wide network of external agents to reach potential borrowers across the country, he said.

Highlighting the company's distinct positioning, Pande explained that Finance Buddha's hybrid model combines the trust and personal touch of human agents with the efficiency and scalability of digital systems.

"Speed has become very important for this business," he said, noting that evolving consumer behaviour, rising aspirations, and wider credit adoption are reshaping country's lending ecosystem.

According to him, AI is the way forward. Through its AI-driven personalised models and automated chatbot interactions, the company offers customized loan experiences while collecting real-time customer feedback.

Since its inception, Finbud Financial Services has built a strong presence, with over 4 crore customers, covering 19,000 pin codes, and disbursing loans worth more than Rs 50,000 crore.

The company counts Ashish Kacholia, the MS Dhoni Family Office, and Shankar V, founder of CAMS, among its key investors.

On Tuesday, the firm raised around Rs 20.4 crore from a mix of domestic and foreign investors ahead of its public issue. The company's shares are scheduled to list on the NSE's Emerge platform on November 13.