Orange Retail Finance Completes ₹50 Crore Listed NCD Issuance

Orange Retail Finance India Private Limited has successfully completed its first listed Non-Convertible Debenture (NCD) issuance of ₹50 crore, marking its entry into the listed debt market. This issuance is the first tranche under the company’s ₹200 crore listed NCD programme for FY27, backed by UMI Capital, and forms part of a broader ₹300 crore debt fundraising plan for the financial year. Rated ICRA BBB− (Stable) and registered with the RBI as an NBFC, the company aims to diversify its funding base and target ₹550 crore in assets under management (AUM) during FY27.

Strategic Transition and Portfolio Performance:
The capital-raising initiative accompanies Orange’s strategic shift from its legacy two-wheeler lending portfolio to a predominantly secured retail finance model focusing on Gold Loans and MSME Loan Against Property (LAP) across semi-urban and rural South India. This transition has improved portfolio quality, with the gross non-performing assets (NPA) dropping from 9.3% in March 2024 to about 2.1–2.8%, while maintaining a capital adequacy ratio (CRAR) of 34%. Operations are concentrated in Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana, serving many first-time formal credit users.

Leadership, Financial Inclusion, and Five-Year Roadmap:
The company is scaling its focus on financial inclusion, noting that women currently make up 35% of its borrower base a proportion it intends to double as it grows. To support its expansion, Orange has strengthened its senior management with seasoned executives across risk, financial, and operational roles. Under its long-term roadmap, the company targets scaling its AUM from ₹410 crore to ₹3,000 crore by FY2031.