India’s Rapidly Growing Finance Firm Bets Big on Diversified Lending and Expansion

An Indian non-bank finance company is taking major steps to scale up its operations and increase its presence across the country. The company has laid out a bold plan—to double its workforce and increase its total assets to ₹1.5 trillion over the next five years. The move is part of a broader push to deepen its footprint and strengthen its range of offerings.

Arvind Kapil, the company’s CEO and MD has introduced a roadmap that includes launching six new lending products. These are designed for a wide range of customers—from those buying gold or used cars to shop owners and students needing education loans. The rollout will take place in a phased manner over the next year to year and a half.

A Leadership Team That Knows the Terrain

Kapil is no stranger to scaling businesses. He played a major role in developing HDFC Bank’s mortgage arm. Now, he has built a senior management team with experts from his previous workplace and other respected banks like Yes Bank. This group brings deep knowledge of the sector and has been tasked with executing the company’s new growth vision.

Reaching Customers Where They Are

One of the key parts of the strategy is setting up close to 400 new branches by next year. At present, the company runs about 100 branches. With the additional branches, it hopes to cater to customers in smaller cities and semi-urban markets. These areas often have high demand for gold loans and other basic credit needs. A hybrid model that combines digital convenience with physical service points will be used to make access easier.

Progress Despite Sector Challenges

Though the overall credit demand has slowed this year, Poonawalla Fincorp Limited is pushing ahead with optimism. Kapil believes that a broader product mix will not only fuel growth but also lower risk. As the company spreads into new customer groups, operating costs are also expected to shrink when compared to asset size.

He shared that a well-rounded portfolio—consisting of nine or ten distinct loan types—will give the company long-term stability. Among the key target audiences are salaried workers employed in India’s leading 300 firms, who typically show lower credit risk and higher repayment rates.

Strengthening the Workforce

Currently staffed by about 2,500 people, the firm plans to double this number within the next three quarters. As new loan categories are launched, the company will bring in specialists to manage operations and build teams across India.

Mixed Quarter but Positive Momentum

In recent months, the company faced pressure due to rising provisions and higher operational expenses. These factors impacted its quarterly results and affected market sentiment. But since then, investor confidence has started returning. Analysts at Motilal Oswal termed it a “kitchen sink” quarter, where several significant changes were made all at once. While some short-term pain is expected, analysts remained supportive of the company’s direction and kept a positive rating.

Exploring the Wealth Business

Looking ahead, the company is also eyeing opportunities in wealth management. Initially, it will distribute third-party investment products using its expanding branch network. Later, it may consider introducing its own solutions. This would allow it to tap into a new customer segment and build on its existing base.

A Legacy of Trust Driving Forward

The company was rebranded in 2021 after being acquired by a business group already well-known in India. During the pandemic, the group’s healthcare arm gained national attention for its vaccine production and efforts to support public health. That image of reliability now helps the finance division as it seeks to build a similar reputation in the lending space.

Arvind Kapil said that the trust earned during that time continues to open doors. The finance firm now hopes to leverage that trust to create long-lasting relationships with customers across the country.

This phase of expansion is more than just numbers. It’s about laying a strong foundation for the future—one that combines strategic hiring, innovative lending, and a commitment to meeting people’s real-world needs. With focused leadership and a clear plan, the company is getting ready to write its next big chapter in India’s financial journey.