OnEMI Technology Solutions, the listed parent of digital lender Kissht, plans to raise Rs 832 crore through a preferential issue, with about 75% of the proceeds earmarked for its non-banking financial company (NBFC) subsidiary, founder and CEO Ranvir Singh said. The remaining funds will be used for technology, artificial intelligence (AI) and general corporate purposes.

“The idea is to target multiple credit rating upgrades over the next two years,” Singh told FE. “One of the most cardinal factors for all the rating agencies is the kind of size you have from a net worth perspective.”

“Fresh capital is not merely to support the growth, but most importantly to improve the economics, as it will further reduce our cost of funds,” he said.

OnEMI’s board on Thursday approved the issue of about 26.5 million shares at Rs 314.11 apiece to 34 investors. The investors include Axis Mutual Fund, HDFC Mutual Fund, the Massachusetts Institute of Technology, WhiteOak, 360 One, Groww Mutual Fund and Bandhan Mutual Fund.

The fundraise is subject to shareholder approval at an extraordinary general meeting scheduled for October 14. It comes four months after the company raised Rs 926 crore through its initial public offering (IPO) at Rs 171 a share.

Singh said the proposed fundraise would not change the company’s guidance on credit costs. “We continue to hold what we gave as guidance on credit cost reduction. Our guidance then was a reduction of over 15% in credit cost over a year.”

In Q1 FY27, Kissht’s operating revenue rose 45% year-on-year to Rs 670 crore, while profit increased 58% to Rs 95 crore. Its assets under management (AUM) grew 61% to Rs 8,001 crore.