Paisalo Digital Taps LoanKhata in Proposed ₹1,000 Crore Co-Lending Partnership to Fuel Growth Strategy

Paisalo Digital Taps LoanKhata in Proposed ₹1,000 Crore Co-Lending Partnership to Fuel Growth Strategy​

New Delhi, August 19, 2026: Paisalo Digital Limited, a lending platform focusing on providing formal credit access to micro-enterprises and MSMEs across India, announced it has entered into a Memorandum of Understanding (MoU) with LoanKhata for a proposed co-lending partnership. This collaboration is designed to accelerate Paisalo's expansion plans by leveraging complementary distribution networks.

The proposed co-lending facility stands up to ₹1,000 crore. Under the intended structure, Paisalo would fund 80% of each eligible loan, with LoanKhata funding the remaining 20%. The partnership is specifically aimed at expanding financing capabilities for MSMEs and micro-enterprises.

This move aligns with Paisalo’s three-year strategic roadmap, which targets doubling its Assets Under Management (AUM), total income, and Profit After Tax (PAT) while maintaining high asset quality standards.

Combining Distribution Powerhouses​

The partnership integrates the vast market reach of both companies, creating a robust platform for borrower acquisition across semi-urban and rural markets.

Paisalo has significantly scaled its network, growing from 1,052 touchpoints in FY23 to 5,995 touchpoints as of Q1 FY27. This extensive infrastructure includes 424 branches, 3,997 distribution points, and 1,574 business correspondents across 23 states.

LoanKhata adds a large retail ecosystem with over 100,000 retailers registered as CSPs (Customer Service Points), providing access to a customer base exceeding 90 million customers.

The combined reach is intended to strengthen sourcing and onboarding processes, enabling deeper borrower penetration in underserved segments.

Strategic Focus on Responsible Growth​

Paisalo's lending franchise has been built on disciplined underwriting and prudent risk management. The proposed partnership with LoanKhata aims to accelerate borrower acquisition while reinforcing the company’s transition toward a more AI-enabled, distribution-led growth platform anchored by responsible lending principles.

Key strategic objectives of the co-lending venture include:

• Enhanced Reach: Combining Paisalo's 5,995 touchpoints with LoanKhata's network of over 100,000 retailers and 90 million customers.
• Targeted Lending: Enhancing origination capacity for micro-enterprises and MSMEs borrowers.
• Asset Quality Maintenance: Preserving Paisalo’s disciplined underwriting and portfolio monitoring framework.

Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, stated that the partnership is a significant milestone in the company's scaling journey. He noted that by uniting LoanKhata's extensive network with Paisalo's technology-enabled underwriting capabilities, they are creating a scalable model to serve more eligible MSME and microenterprise borrowers across India.

Agarwal added, "Our objective is to scale faster, but scale responsibly. We will continue to grow through deeper distribution, technology-led operating leverage, disciplined underwriting, and pristine asset quality."

PAISALO Stock Price Movement​

Shares of Paisalo Digital Limited are edging higher to ₹69.10 as of 1:37 PM today, achieving a 2.26% gain in active trading. The stock is currently seeing strong interest, with over 3.88 million shares traded as the price holds steady within its intraday range of ₹67.44 to ₹69.69.