Adar Poonawalla, Chairman of Poonawalla Fincorp, has announced plans to raise $1 billion by the end of 2025 to expand the company’s non-banking financial operations. The capital infusion is expected to support aggressive growth in digital lending, personal loans, and SME finance, reinforcing Poonawalla Fincorp’s position in India’s evolving credit market.
Strategic Expansion & Capital Raise
The proposed fundraising may be executed via a Qualified Institutional Placement (QIP) or by bringing in a financial investor, with the entire amount being a primary infusion—no secondary component is being considered. Poonawalla emphasized that finance companies require substantial capital to scale, and this move aligns with the company’s 30–40% annual growth target.
Financial Performance & Market Position
Poonawalla Fincorp currently manages assets worth ₹35,000 crore, with a 4x leverage against its net worth. The company has been expanding its footprint in secured lending, focusing on low-risk, collateral-backed loans to maintain financial stability.
Shift in Strategic Priorities
In March 2025, Poonawalla sold his stake in Magma Insurance to Patanjali Ayurved and DS Group for ₹4,500 crore, reallocating resources from insurance to strengthen his NBFC business. The company is also cautiously exploring real estate investments, with selective partnerships in key locations.
Future Outlook & Industry Impact
With India’s financial services sector witnessing rapid expansion, Poonawalla Fincorp aims to capitalize on growing credit demand while maintaining a disciplined risk management approach. The planned $1 billion capital raise is expected to enhance lending capacity, positioning the company for long-term sustainable growth.
