Moneyview is a leading Indian digital lending firm. It has formally prepared to become a listed company by submitting its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The Bengaluru-based startup that has recently become a unicorn project plans to raise ₹1,500 crore in the course of its initial public offering.
The move is a milestone in the history of the company as it represents ten years of expansion in the fintech industry and the capacity to expand operations without harming its finances. The platform was founded by Puneet Agarwal and Sanjay Aggarwal, and its decision to go public reflects the growing maturity of the Indian technology-driven financial services sector.
Primary objective and breakdown of the IPO structure
The initial public offering proposed is organized as a mixture of fresh capital and an exit opportunity for current shareholders. The ₹1,500 crore IPO will include a fresh issue, according to the regulatory filing, of equity shares worth ₹750 crore. It also has an offer for sale (OFS) component worth ₹750 crore.
The OFS part enables some of the largest profiled venture capital firms and institutional investors to dilute their interests or leave their investments. Some of the key investors that are involved in the offer of sale include Tiger Global, Accel, Ribbit Capital, Evolvence India, Apis Partners, and Winter Capital. This varied cap table of international investors highlights the major level of international attention that the company has received in its different financing rounds.
In order to cope with the complexities of this market entry, Moneyview has entrusted a team of top financial institutions to serve as the book-running lead managers. The moderation involving a fresh issue and an OFS shows how the company is two-fold in terms of securing new capital to expand and make available liquidity to the initial supporters that helped it become a unicorn.
The major goal of the new issue of ₹750 crores is to equip the company with the capital it needs to propel its second wave of growth. Moneyview indicated that the proceeds are going to be used to increase its capital base and be in a position to cover its future capital needs efficiently in the DRHP. A large percentage of this fund should be used to grow its lending operations.
This will enable the company to grow its loan book and credit more of its expanding user base, as it will have a stronger balance sheet. The company has also used a part of the funds to invest in general corporate purposes, which gives the company a financial buffer to experiment with new opportunities, improve its service offerings, and maneuver the changing regulatory landscape of the Indian fintech market.
Financial performance and technological edge
Among the most interesting points of the IPO filing by Moneyview is the solid financial performance that the company experienced before the public offering. The company registered a huge 75% growth in its operating revenue, which grew to ₹1,012 crore during the fiscal year ending in March 2024. It is a significant increase compared to the ₹577 crores in the 2023 financial year.
In addition to this growth at the top line, the company also recorded good growth in the bottom line. FY24 net profit increased by 27%, with net profit being ₹171 crore compared to ₹135 crore last year. These numbers point to a business that has managed to control its aggressive growth with operational effectiveness and profitability.
This financial trend of the company was further validated when it raised $38.6 million with the help of Apis Partners in September 2024. This particular financing round was significant because it valued Moneyview at $1.2 billion, and it became an official unicorn. This valuation is a solid base for its public listing as it gives potential investors confidence in the position that the company holds in the market and its value creation in a competitive environment.
The core of the success of Moneyview is its advanced digital lending platform, which specializes in offering personal loans and credit cards. The company differentiates itself by its own credit scoring model, which relies on sophisticated data analytics to determine the creditworthiness of the applicants.
This is a technology-first strategy that enables Moneyview to reach a wide range of consumers, including those who may struggle to secure credit in the mainstream banking systems. The platform provides a complete end-to-end digital experience by automating the whole lending process, including application, credit check, disbursement, and collections. This business structure has played a crucial role in allowing the company to grow fast and maintain its default rates low.
Conclusion
The submission of the DRHP of a ₹1,500 crore IPO by Moneyview is a historic event in the history of the company and a good omen to the Indian startup ecosystem at large. The firm has offered a solid argument in the change to the public markets by displaying steady growth in revenues and a history of profitability.
The company has the support of the leading international investors and a strong technological platform of electronic lending, which allows the company to use the new capital to extend and conquer the credit area. Moneyview, in its future listing, is a living example of how Indian fintech companies can reach a massive scale and financial sustainability and address the crucial problem of access to credit by millions of users.
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