Finbud Financial Services Ltd IPO
IT - Software
Price Band
₹140 – ₹142
Lot Size
1000
Minimum Bid Quantity
2000
Minimum Investment
₹284000
Issue Size
₹71.68Cr
Opens
2025-11-06
Closes
2025-11-10
Listing
13-11-2025
Subscription Status
Qualified Institutional Buyers
-7.18 x
Non-Institutional Investor
5.06 x
Retail Individual Investor
2.31 x
Total
3.39 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE0EDU01014
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Finbud Financial Services, established in 2012, operates as a retail loan marketplace across India. Initially founded in Bangalore by Vivek Bhatia, Parag Agarwal, and Parth Pande, the company connects borrowers with various lenders, including banks and non-banking financial companies (NBFCs), to offer personal, business, and home loans. Finbud's hybrid model combines digital marketing and a wide network of agents to acquire customers. The company helps customers compare loan offers and assists them through the loan documentation process. While Finbud does not take on credit risk, it earns commissions from lenders upon loan disbursement. The company’s operations span India, with a focus on both conventional lending through agents and digital lending through an online platform.
Pros
- • Finbud operates in the rapidly growing digital lending market, driven by factors such as increasing internet penetration, smartphone usage, and the rising adoption of digital financial services. The company claims to leverage advancements in technology to enhance credit assessments and improve operational efficiency, aligning with the sector's growth.
- • By integrating a hybrid business model that combines traditional agent-based channels with digital platforms, Finbud claims to cater to a diverse customer base, reaching both digitally savvy users and those who prefer conventional methods. Additionally, the company claims to have strong partnerships with major banks and NBFCs, enhancing its competitive edge in the marketplace.
- • The company is ISO/IEC 27001:2022 certified for its information security management systems.
Cons
- • Finbud’s business is heavily reliant on its agent channel sales. They accounted for Rs 73.64 crore (86.17 percent) (standalone) of the company’s revenue for the period ended July 31, 2025; Rs 190.26 crore (85.46 percent) (standalone) in FY25; Rs 163.03 crore (86.03 percent) (standalone) in FY24; and Rs 118.45 crore (87.79 percent) (standalone) in FY23. If any of these partners terminate their relationships, reduce the volume of business, or alter collaboration terms, such as modifying revenue-sharing agreements or imposing stricter compliance requirements, it could negatively affect the company's profitability and operational flexibility.
- • Finbud is critically dependent on its partnerships with banks and NBFCs for the distribution of financial products. These partnerships enable the company to offer a range of financial products, including loans and insurance services. Any decrease in lending volume, unfavourable changes in terms, or failure to comply with restrictive covenants related to service standards and data security could harm the company’s revenue and growth prospects.
- • The top lending partner alone accounted for Rs 16.31 crore (19.09 percent) (standalone) of the company’s revenue for the period ended July 31, 2025; Rs 44.75 crore (20.10 percent) (standalone) in FY25; Rs 28.25 crore (14.90 percent) (standalone) in FY24; and Rs 26.71 crore (19.80 percent) (standalone) in FY23. Any loss or reduction in business from this key partner could severely impact the company’s financial stability and growth.
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