Paisalo Digital Proposes ₹1,000 Crore Co-Lending Partnership with LoanKhata to Accelerate Growth
New Delhi, August 19, 2026: Paisalo Digital Limited has announced a proposed ₹1,000 crore co-lending partnership with LoanKhata, marking another step in the company’s strategy to expand its loan book, strengthen distribution and increase access to formal credit for micro-enterprises and MSMEs across India.
The company has entered into a Memorandum of Understanding (MoU) with LoanKhata for the proposed co-lending facility. Under the proposed arrangement, Paisalo Digital would fund 80% of each eligible loan, while LoanKhata would contribute the remaining 20%. The facility is expected to focus primarily on micro-enterprises and MSME borrowers.
Paisalo Digital Targets 2X Growth in Three Years
The proposed partnership is aligned with Paisalo Digital’s three-year strategic roadmap, under which the company aims to double its Assets Under Management (AUM), total income and Profit After Tax (PAT) while maintaining strong asset quality and disciplined risk management.
The ₹1,000 crore co-lending facility is expected to support the company’s expansion by increasing loan origination capabilities and providing access to a broader pool of borrowers.
Paisalo’s Distribution Network Expands to 5,995 Touchpoints
Paisalo Digital has significantly expanded its distribution network in recent years. Its network has grown from 1,052 touchpoints in FY23 to 5,995 touchpoints as of Q1 FY27.
The current network includes 424 branches, 3,997 distribution points and 1,574 business correspondents across 23 states and Union Territories.
LoanKhata is expected to complement this network with its own last-mile ecosystem comprising more than 1 lakh retailers with CSP registration and access to a customer base of over 90 million.
The combined distribution network could help the companies strengthen borrower sourcing, onboarding and customer engagement, particularly across semi-urban and rural markets.
Focus on MSME and Micro-Enterprise Lending
The proposed partnership is expected to increase Paisalo’s origination capabilities in the micro-enterprise and MSME lending segment.
By leveraging LoanKhata’s existing retailer and CSP network, Paisalo aims to expand its reach without relying solely on traditional branch-led distribution. The model could provide an asset-light route to deeper penetration in underserved markets while complementing Paisalo’s existing branches, distribution points and business correspondent network.
Technology-Led and Partnership-Driven Growth
Paisalo said its lending franchise has been built around disciplined underwriting, risk management, collections and a deep understanding of borrowers.
The proposed partnership is part of the company’s transition towards a more AI-enabled, technology-driven and partnership-led lending model. Digital onboarding, technology-enabled underwriting, data analytics and collection capabilities are expected to play an increasingly important role as the company scales its business.
The company also emphasised that growth will remain focused on maintaining asset quality and responsible lending practices.
Management Commentary
Commenting on the development, Santanu Agarwal, Deputy Managing Director of Paisalo Digital, said the company is focused on scaling its business and has built momentum across AUM growth, profitability, distribution expansion and asset quality.
He said the proposed ₹1,000 crore co-lending partnership with LoanKhata is an important milestone in Paisalo’s three-year growth roadmap. According to management, combining LoanKhata’s network of more than 1 lakh retailer/CSP touchpoints and access to over 90 million customers with Paisalo’s 5,995 touchpoints and technology-enabled lending capabilities could create a scalable model for serving eligible MSME and micro-enterprise borrowers.
Management reiterated that the objective is to scale faster but responsibly, supported by deeper distribution, technology-led operating leverage, disciplined underwriting and strong asset quality.
Key Takeaways for Investors
The proposed partnership provides Paisalo Digital with several potential growth levers:
- ₹1,000 crore proposed co-lending facility
- Paisalo to fund 80% and LoanKhata 20% of eligible loans
- Focus on MSMEs and micro-enterprises
- Paisalo’s network expanded to 5,995 touchpoints
- LoanKhata brings 1 lakh+ retailer/CSP network
- Access to a customer base of 90 million+
- Supports Paisalo’s three-year 2X AUM, income and PAT ambition
- Greater penetration into semi-urban and rural markets
- Focus on technology-enabled lending and digital onboarding
- Continued emphasis on asset quality and disciplined underwriting
About Paisalo Digital
Paisalo Digital Limited is a technology-enabled lending platform focused on providing formal credit to underserved borrowers, micro-enterprises and MSMEs across India. The company operates through a network of 5,995 touchpoints across 23 states and Union Territories and aims to simplify access to MSME and micro-enterprise financing through technology, distribution, data analytics and customer-focused lending solutions.
Important: The ₹1,000 crore facility is described by the company as a proposed co-lending partnership under an MoU. It should therefore not be interpreted as an already disbursed ₹1,000 crore loan book or completed transaction. The actual deployment will depend on the terms and implementation of the proposed arrangement.
Source: Paisalo Digital Limited press release dated August 19, 2026, submitted under Regulation 30 of the SEBI (LODR) Regulations, 2015.