Orange Retail Finance raises Rs 100 crore debt for MSME pivot
Orange Retail Finance has raised Rs 100 crore in debt through listed non-convertible debentures arranged by UMI Capital. The NBFC also added a Rs 100 crore co-lending partnership with Shriram, both aimed at funding a different loan book.
The Rs 100 crore NCD issuance is half of a Rs 200 crore programme set for this financial year, and part of a wider Rs 300 crore debt target the company plans to meet through further issuances and borrowing from banks and other institutions. Orange is also planning to raise Rs 100 crore in equity capital.
Built on two-wheelers, now moving into gold and MSMEs
Orange Retail Finance started in Chennai 13 years ago writing two-wheeler loans through dealerships. It runs 58 branches across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana, with Rs 401 crore in assets under management as of June 2026.
The growth is meant to come from gold loans, MSME loans against property and home loans. Loans against property made up 58% of the book in June, overtaking two-wheelers at 41%. Six months earlier, the split was the other way round.
The co-lending deal with Shriram, one of India's largest retail NBFCs, extends a model Orange already uses. Co-lending currently funds about a quarter of its loan book, with three NBFC partners accounting for roughly Rs 101 crore as of June. The structure lets Orange originate loans and keep the customer relationship while the larger partner holds most of each loan on its own balance sheet.
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Orange is targeting Rs 550 crore in AUM by the end of this financial year and plans to reach 150 branches with about 1,500 employees. Every branch will have gold loan infrastructure in place by October 2026. The longer-term ambition is Rs 3,000 crore in AUM by FY31.
Strengthening the operating core
To support the expansion, Orange has onboarded a CXO team across finance, business, operations, risk, technology and treasury. The company is also investing in AI, automation and digital credit processes as support for branch staff who already know the local market rather than as a replacement for them.
"We want to combine the strength of our people and customer relationships with the intelligence of technology and the discipline of institutional finance. That is how we believe we can build a financial institution that lasts," said Ebenezer Daniel G, Founder and CEO of Orange Retail Finance.
"Our ambition is not merely to become larger, but to become a trusted neighbourhood financial institution, one that stays close to customers, understands communities and creates meaningful value in their lives," Daniel added.
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