Paisalo Digital completed its first $15 million transaction through an ECB structure in March 2026, which has allowed it to expand the sources of funding and enhance lending growth. The company's intent to access international capital markets will help obtain financing at a lower cost than alternative methods and reduce reliance on traditional sources of funds.
Paisalo Digital is stepping into global debt markets for the first time as it looks to scale its lending operations and strengthen long-term financial stability. The External Commercial Borrowing (ECB) issuance is designed to broaden Paisalo’s funding base and optimize its overall cost of capital.
Santanu Agarwal, Deputy Managing Director, Paisalo Digital Limited, said, “The successful closure of our maiden ECB issuance marks a pivotal step in strengthening our liability franchise. By accessing diversified and long-tenor funding, we are enhancing our ability to sustainably scale the business while maintaining prudent risk management.”
Paisalo Digital’s maiden ECB transaction marks a significant milestone in the company’s funding strategy. It has introduced a new avenue for capital raising beyond domestic sources. The move improves its liability franchise by adding a stable, long-term funding source.
The proceeds from the transaction will be deployed to expand Paisalo’s lending portfolio, particularly in MSMEs and other priority sectors.
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At the end of the December quarter (Q3FY26), SBI Life Insurance held a 6.83% stake in Paisalo Digital. SBI Life Insurance has been holding a stake in the company since December 2020, though it has gradually trimmed its ownership.
The retail investors collectively owned a 30.5% stake in the company at the end of Q3 FY26, while FIIs held a 20.1% stake.
The promoters own the majority stake of 41.8%, with Equilibrated Venture Cflow Private Limited. It is part of the promoter group, which holds the largest share of 20.53%.
Paisalo Digital's share price is down 3% so far in March, following a 3.7% jump in February. The stock faced sharp selling pressure between April 2024 and August 2025, during which it lost 50% of its value, emerging as one of the biggest wealth destroyers. In terms of yearly performance, the stock posted a 27.43% loss in CY25, marking its first annual decline in nine years.
“This transaction also reflects the confidence of lenders in our operating model and growth strategy. The additional capital will enable us to deepen credit penetration across underserved segments and drive inclusive economic development,” Santanu Agarwal further added.