Lending firm Kissht raises $80m in new round

Consumer lending firm Kissht has raised $80 million in a new round led by Vertex Growth and Brunei Investment Agency. Existing investors Vertex Ventures SEA India and Endiya Partners also participated in the round.

For Kissht, this is the second funding round in 2022. The Mumbai-based startup had secured Rs 100 crore or $13.3 million of debt from Trifecta Capital and Northern Arc in January. So far, it has recovered about $275 million from equity and debt rounds.

The company will deploy the new revenue to improve its product design, grow card issuance to 10 million over the next 12 to 18 months, increase its book size and improve its technology backend, Kissht said in a statement.

Although the company did not disclose its valuation, an ET report estimated it at around $500 million citing sources.

Kissht will also foray into Slice, Uni and OneCard, where it will issue its buy-now-pay-later (BNPL) cards in association with RBL and SBM Bank to customers linked to a line of credit.

Founded in 2015, Kissht offers an instant line of credit for small business transactions and small personal loans to new credit customers based on robust data analytics (Kissht score). It has established a network with over 3000 offline merchants and over 50 online stores in around 40 cities in India.

The company claims to have nearly 3.2 million consumers on its platform, with more than 50% active monthly.

According to Kissht, its total consolidated revenue was Rs 410 crore in FY22 and pre-tax profits were Rs 55 crore. However, Onemi Technology Solutions, Kissht’s holding company, saw its operating revenue decline in fiscal year 2020-21 or FY21. Its operating revenue decreased by 31.7% to Rs 170.3 crore in FY21 from Rs 249.52 crore in FY20, according to regulatory filings by the company with the Rock. The company’s annual losses also jumped by 2.7X to Rs 58.45 crore in FY21 from Rs 22.05 crore in the prior year (FY20).

Troy M. Hoffman