Peer-to-peer lending connects individual lenders directly to borrowers, bypassing banks and other financial institutions.A stock market listing would mark a milestone for the sector, which has faced slower growth and higher compliance costs after the Reserve Bank of India tightened rules in 2024, including stricter purchasing norms and a ban on guaranteed returns.
Vartis has set two internal goals ahead of the IPO: annual profits of more than 1 billion rupees ($11.1 million) and restructuring its accounting practices to align with listed peers.
“There’s a lot of internal structuring that needs to happen… we’ve already started doing that in the last few quarters,” Patel said.
The Mumbai-based company posted revenue of Rs 2.4 billion and profit of around Rs 340 million in fiscal 2025, according to its website. For the current fiscal, it expects revenue of Rs 3.2 billion to Rs 3.5 billion and profit of between Rs 500 million and Rs 600 million, Patel said.
He also said the RBI restrictions will negatively impact production and profitability in fiscal 2024, but LenDenClub has since revamped its platform and now processes nearly 95% of India’s P2P lending volume. Reuters could not independently verify that market share.
Vartis Platforms also operates InstaMoney, a lending marketplace, and Vartis One, its technology arm. Backed by Artha Capital and Tuscan Ventures, the company last raised funding in 2021.
India’s IPO market is set for another record year in 2025, with fundraising expected to surpass last year’s $20.5 billion on the back of more than 300 listings, including fintechs Pine Labs and Groww.
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