Vaibhav Vyapaar Limited

Vaibhav Vyapaar Limited is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). Originally incorporated in February 2009, the company was acquired by Capfront Technologies Private Limited in October 2019 and subsequently transitioned into a technology-driven digital lending institution. The company primarily provides unsecured short-term personal loans to salaried and self-employed individuals through its proprietary digital lending mobile application, "LoanFront". Its core value proposition focuses on enabling paperless, instant credit access, particularly for first-time borrowers and lower-income salaried professionals across urban and semi-urban India. The underlying business model combines direct balance-sheet lending with co-lending partnerships with other financial institutions, alongside generating service fee income by providing application and technology solutions to partner NBFCs.

The company's target demographics comprise salaried individuals (earning over ₹25,000 per month, aged 21 to 55) and self-employed borrowers across urban and semi-urban regions. Under its "LoanFront" application, it offers short-term flexi personal loans ranging from ₹1,500 to ₹30,000 (with repayment tenures of 3 to 12 months and effective annual percentage rates ranging from 17.50% to 33.94%), as well as customized salaried loans of up to ₹2,00,000. Geographically, its loan portfolio is spread across multiple states in India, with key markets including Uttar Pradesh, West Bengal, Gujarat, Delhi, Bihar, Rajasthan, and Madhya Pradesh. Customer retention remains strong, with repeat borrowers contributing 75.40% of operational revenue in FY26 and 78.81% in the stub period ended July 31, 2026.

As a technology-focused digital non-banking financial institution, traditional manufacturing infrastructure, factory locations, installed plant capacity, and capacity utilization figures are not applicable to Vaibhav Vyapaar Limited. Instead, the company operates from leased corporate office spaces located in Kolkata (Registered Office) and Bengaluru (Corporate Operational Office). Its core operational infrastructure centers on information technology systems, cloud hosting servers, digital communication networks, and mobile application technology rather than physical manufacturing setups.

On the technological and operational front, the company relies on its proprietary digital platform "LoanFront", which was acquired via a slump sale in June 2022 and is continuously developed by an in-house technology team. Over the last three financial years, the company has invested ₹7.24 crore in intangible assets toward software development, platform enhancements, and digital infrastructure. The platform features an automated rule-based underwriting engine that integrates with credit information bureaus, digital Know Your Customer tools (e-KYC, Aadhaar, PAN, DigiLocker, Face Match, and Video KYC), e-Sign, account aggregators, digital payment gateways (UPI, eNACH, and BBPS), and automated risk-scoring engines. As of June 2026, the "LoanFront" app recorded over 114 lakh downloads, approximately 86 lakh registered users (18 lakh KYC-verified), and cumulative disbursements exceeding ₹1,500 crore.

Financially, Vaibhav Vyapaar Limited reported total income and net profits of ₹25.46 Cr and ₹0.45 Cr (FY24), ₹25.34 Cr and ₹1.48 Cr (FY25), ₹37.64 Cr and ₹1.97 Cr (FY26), and ₹18.15 Cr and ₹3.01 Cr (for the four months ended July 31, 2026). The company demonstrated steady top-line growth and net profit expansion, alongside an increase in total borrowings from ₹22.66 Cr in FY25 to ₹46.80 Cr in FY26 to support its loan book expansion. The company maintains an average EPS of ₹0.96 and an average RoNW of 5.48% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.33 (NAV of ₹23.15 as of July 31, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.70. Attributing the historical earnings to the expanded post-issue equity base, the asking price reflects a Post-Issue P/E of approximately 334.62 (FY24), 102.85 (FY25), and 77.21 (FY26). A comparison with listed peers shows that companies like Paisalo Digital Limited (P/E 29.6x) and Apollo Finvest (India) Limited (P/E 21.6x) trade at an industry average P/E of 26.27x, indicating that this issue is aggressively priced relative to listed peers based on historical FY26 earnings.

The issue is managed by Getfive Advisors Private Limited, which has handled 4 public issues to date. Out of its last 4 managed IPOs, one listed below the issue price, while the remaining three listed at or above it. As of October 8, 2026, one of these recent issues is currently trading below its issue price, while the remaining are trading at or above it. KFin Technologies Limited is acting as the Registrar to the Offer.

• 1 Itha Venkata Raghava Gowrinath
• 2 Capfront Technologies Private Limited