Vaibhav Vyapaar Ltd. IPO

Vaibhav Vyapaar

• Vaibhav Vyapaar is coming out with an initial public offering (IPO) of 77,96,000 shares in a price band of Rs 51-54 per equity share.
• The issue will open for subscription on October 13, 2026 and will close on October 15, 2026.
• The shares will be listed on Emerge Platform of NSE.
• The face value of the share is Rs 5 and is priced 10.20 times of its face value on the lower side and 10.80 times on the higher side.
• Book running lead manager to the issue is Getfive Advisors.
• Compliance officer for the issue is Aditya Singh Solanky.

Profile of the company

Vaibhav Vyapaar is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). It provides unsecured personal loans to salaried individuals and self-employed individuals through its fully digital lending platform, both on a direct lending and co-lending basis. In parallel, it also generates revenue by offering its application and technology services to other NBFCs. Its operating model enables credit access, particularly first-time borrowers, including lower-income salaried professionals.

The company operates through its mobile application, which support loan origination, due diligence and underwriting process along with documentation, disbursal, and repayment. The company’s digital infrastructure uses verification and technology-enabled tools that facilitate credit assessment, credit decisioning and risk evaluation.

The company offers personal loans under the brand “LoanFront”, through Mobile application namely “LoanFront- Personal Loan App” which provides credit facilities to retail customers. Alongside its direct lending portfolio, it also participates in co-lending arrangements other NBFCs, wherein loans are originated, underwriting process along with documentation, and services. The company’s lending operations are focused on meeting the credit requirements of salaried individuals and self-employed borrowers across urban and semi-urban regions of India.

Proceed is being used for:

• Augment the capital base of the company
• General corporate purpose

Industry Overview

India’s banking sector stands as a pillar of the nation’s economic progress, playing a vital role in mobilising capital, expanding credit access, and driving financial inclusion. While it continues to navigate challenges such as regulatory shifts, rising operational costs, and growing competition from fintech players, the sector is simultaneously embracing opportunities brought by digital innovation, structural reforms, and evolving customer needs. From UPI’s global reach to a surge in fintech investments andgrassroots financial schemes like Jan Dhan Yojana, India’s banking landscape is undergoing a dynamic transformation, laying the groundwork for a more inclusive, tech-driven, and resilient financial ecosystem.

Indian Fintech industry is estimated to be at Rs 12,99,450 crore ($150 billion) by 2025. India has the third largest FinTech ecosystem globally. India is one of the fastest-growing Fintech markets in the world. There are currently more than 2,000 DPIITrecognized Financial Technology (FinTech) businesses in India, and this number is rapidly increasing. The digital payments system in India has evolved the most among 25 countries with India’s Immediate Payment Service (IMPS) being the only system at level five in the Faster Payments Innovation Index (FPII). India’s Unified Payments Interface (UPI) has also revolutionized real-time payments and strived to increase its global reach in recent years.

Enhanced spending on infrastructure, speedy implementation of projects and continuation of reforms are expected to provide further impetus to growth in the banking sector. All these factors suggest that India’s banking sector is poised for robust growth as rapidly growing businesses will turn to banks for their credit needs. The advancement in technology has brought mobile and internet banking services to the fore. AI and automation are demonstrating unprecedented value while Blockchain has sparked innovation throughout the business landscape and is poised to continue in doing so. The banking sector is laying greater emphasis on providing improved services to their clients and upgrading their technology infrastructure to enhance customer’s overall experience as well as give banks a competitive edge.

Pros and strengths

Technology-enabled digital lending platform: The company interacts with customers through its application and over time, the company has gained knowledge of market conditions and economic patterns, which assists in assessing the financial needs of individuals across different geographies. This enables the company to offer products aligned with customer requirements, income patterns and cash-flow characteristics. The company has established a technology-enabled digital lending platform, LoanFront, through which it undertakes customer acquisition, digital onboarding, credit assessment, loan origination, servicing and collections. Since the commencement of its operations, it has focused on expanding its customer base through digital channels while developing operational capabilities to support the origination and servicing of retail lending products.

Integrated digital platform supporting the lending lifecycle: The company operates a digital lending platform, “LoanFront,” managed by the company. The platform is used to maintain a customer database and record funds disbursed to different categories of borrowers. The system is designed in line with RBI digital lending guidelines. The company has purchased a proprietary technology platform, LoanFront, which is continuously developed by its internal team, which supports the management of the lending lifecycle, including customer acquisition, digital onboarding, Know Your Customer (KYC) verification, credit assessment, loan origination, documentation, disbursement, servicing, collections and portfolio monitoring.

Technology-enabled underwriting and risk management framework: The company follows an underwriting policy supported by models to evaluate borrower creditworthiness and assess repayment capacity. The risk evaluation framework includes checks, analysis and credit insights, and is used for lending decisions. The company has implemented risk management practices, including portfolio monitoring, review of credit policies, and mechanisms and follow-ups for repayments. These measures are used in managing portfolio quality and default risk. Its lending operations are supported by a technology-enabled underwriting and risk management framework designed to facilitate customer onboarding, credit assessment, fraud monitoring, loan servicing and portfolio monitoring. Its proprietary technology platform integrates various stages of the lending lifecycle through automated workflows, enabling consistent evaluation of loan applications in accordance with its internal credit policies.

Risks and concerns

Geographical concentration of lending operations: The company’s lending operations are spread across multiple states in India; however, a substantial portion of its AUM is concentrated in certain states. Consequently, its business performance is exposed to risks associated with regional economic conditions, changes in local regulations, natural calamities, adverse weather conditions, disruptions in business activities, political developments, changes in borrower behaviour, competitive intensity, and other factors affecting such geographies. Majority of its revenue comes from the state of Uttar Pradesh, West Bengal, Gujarat, Delhi and Bihar. Any decrease in demand for its unsecured loan products, could adversely affect its business, financial condition, cash flows, results of operations and prospects.

Unsecured lending exposing the company to credit risks: The company offers unsecured personal loans to salaried individuals and self-employed individuals. Its customers may be economically less stable than large corporates and as a result, it is more vulnerable to customer default risks including delay in repayment of principal or interest on its loans. Although it employs a data-driven approach to assess the creditworthiness of its customers and have its own customized due diligence and credit analysis procedures, there can be no assurance that these measures are adequate to ensure a lower delinquency rate. Any increase in defaults or its inability to recover outstanding dues may have a material adverse effect on its business, financial condition, cash flows and results of operations.

Dependence on third-party technology providers: The company’s digital lending operations are significantly dependent on third-party software vendors and service providers for critical functions such as customer onboarding, identity and document verification, credit bureau checks, account aggregation, payments, disbursals, communications and collections. Any disruption, failure, security breach, regulatory non-compliance or unavailability of such services could adversely affect its operations, delay loan processing and materially impact its business and financial performance.

Outlook

Vaibhav Vyapaar is a Non-Banking Financial Company providing unsecured personal loans to salaried and self-employed individuals through its fully digital lending platform. The company is having technology-driven digital lending platform. It has focus on underserved and first-time borrowers. On the concern side, the company faces risks arising from geographical concentration of its lending portfolio, borrower defaults on unsecured personal loans and dependence on third-party technology providers. Regional economic disruptions or declining demand in key states may adversely affect its AUM and revenue. Higher loan delinquencies or failure to recover outstanding dues could impact asset quality and financial performance.

The company is coming out with a maiden IPO of 77,96,000 equity shares of face value of Rs 5 each. The issue has been offered in a price band of Rs 51-54 per equity share. The aggregate size of the offer is around Rs 39.76 crore to Rs 42.10 crore based on lower and upper price band respectively. On performance front, revenue from operations increased to Rs 3,679.94 lakh in FY26 from Rs 2,504.86 lakh in FY25, demonstrating a significant growth of 46.91%. Moreover, profit after tax was at Rs 197.10 lakh in FY26 as compared to Rs 147.97 lakhs in FY25.

Meanwhile, the company invest to upgrade the features of its Mobile Application to enhance operational efficiency, expand customer reach, and deliver an underwriting and lending experience. By adopting a digital loan origination platform, it has streamlined the borrowing process, making it faster, more transparent, and accessible to customers across income segments. Technology-enabled credit assessment tools enable assessment of borrower creditworthiness, even for individuals with limited or no credit history, thereby fostering financial inclusion. The processes like digital KYC and online document verification significantly reduce turnaround time and improve accuracy in customer onboarding. Further, the company has creditworthiness verification using Credit Bureau data to generate reports that supports decision-making. By adopting a digital loan origination platform, the company has streamlined the borrowing process, making it faster, more transparent, and accessible to customers across income segments, for creditworthiness verification it is using Credit Bureau data to generate reports that supports decision-making.