Social Worth Technologies Limited IPO

01At a glance

What the company does: lends unsecured personal loans and purpose-driven finance at the point of purchase (education, insurance, healthcare, rooftop solar, travel, e-commerce) through a digital platform with no branches, lending through its subsidiary EarlySalary Services and through co-lending partners (AP p.3, AP p.4). Its brands are "Fibe" and "EarlySalary" (DRHP p.44).

Who pays it: individual borrowers, mainly young middle-income working professionals; there is no customer concentration (AP p.3, AP p.4).

Why it is raising money: ₹5,626 million to add to the capital of its lending subsidiary, EarlySalary Services, and the rest for general purposes (AP p.5).

How fast it has grown: revenue from ₹7,719 million in FY24 to ₹15,845 million in FY26, and assets under management from ₹40,642 million to ₹86,027 million (AP p.7, AP p.8).

The one thing to understand: credit losses are the swing factor. Impairment charges were ₹4,662 million in FY25 and ₹4,200 million in FY26, larger than profit in both years; a smaller charge in FY26 helped lift profit before the exceptional item to ₹2,908 million (DRHP p.70).

02The business, in plain words

A digital consumer lender finds borrowers through its app, partner platforms and merchants, scores them with data and models, and disburses small unsecured loans. It earns interest on loans kept on its own books, and fees on loans it originates and services for partner lenders, including guarantee premium (AP p.4).

A salaried professional applies for a personal loan in the Fibe app → the company assesses it with its credit models → EarlySalary Services or a co-lending partner funds it → the borrower repays monthly, and Fibe earns interest, processing and servicing fees.

Earnings equation: Profit ≈ AUM × (yield + fee income − funding cost − credit cost − operating cost). In FY26 interest income was ₹10,232 million, finance costs ₹2,883 million and impairment ₹4,200 million (AP p.4, DRHP p.70).

03Where the money comes from

Source: AP p.4. Other smaller lines make up the rest of revenue.

Source: AP p.8.

About 39% of AUM at March 2026 sat off the company's books, with co-lending partners (our arithmetic, AP p.8). New customers took 38.53% of personal-loan disbursements in FY26, up from 29.23% in FY24 (AP p.9).

04The growth record

Source: AP p.7, AP p.8, DRHP p.70.

Other income of ₹169.21 million was 4.8% of FY26 profit before tax of ₹3,529.89 million (our arithmetic, DRHP p.70).

05What the growth is made of

AUM grew 63% in FY26 (our arithmetic, AP p.8). Purpose-driven finance grew faster than personal loans, to 23% of AUM (AP p.8). Profit before the exceptional item more than doubled in FY26 as revenue grew 31% and impairment fell 10% (our arithmetic, DRHP p.70).

06Earnings quality

Credit cost is high and volatile. Impairment was about 10% of average AUM in FY25 and 6% in FY26 (our arithmetic, AP p.8, DRHP p.70). Gross stage 3 loans were 2.90% of on-book loans at March 2025 and 1.20% at March 2026, with provision coverage of 78.59% (AP p.8).

The FY26 exceptional item of ₹333.60 million was the company's payment of perquisite tax owed by its founders on exercising vested stock options (DRHP p.49). Operating cash flow is negative because new loans count as operating outflows; it was negative ₹17,190 million in FY26 (AP p.7).

07The balance sheet

Source: AP p.7, AP p.8.

Borrowings nearly doubled in FY26 (AP p.7). The company earns guarantee premium income (AP p.4); the pages read do not give the size of the guarantees. The lending subsidiary must keep capital adequacy set by the RBI (AP p.9).

08What the money is for

Source: AP p.1, AP p.5.

A pre-IPO placement of up to ₹1,500 million may reduce the fresh issue (AP p.5).

09Who is selling

Source: AP p.1, AP p.2. The last row is our arithmetic from the total of 40,071,200; it includes Kariba Holdings, IDG Ventures, Sabre, Chiratae, Galaxystar and Utkarsh.

All ten sellers are investors, offering up to: The Rise Fund III SF Pte. Ltd. 11,713,600 shares, Norwest Capital, LLC 6,738,400, Eight Roads Ventures India III LP 6,556,000, Piramal Finance Limited 3,558,400, Kariba Holdings V Mauritius II 2,980,800, IDG Ventures India Fund III LLC 2,496,800, Sabre Investment Consultants LLP 2,017,600, Chiratae Trust 1,440,800, Galaxystar Ground Pte. Ltd. 1,312,800 and M/s Utkarsh 1,256,000 (DRHP p.4, DRHP p.1, DRHP p.2).

10Promoters

The company has no identifiable promoter, so no promoter contribution is locked in (DRHP p.107). It is run by Akshay Mehrotra, managing director and group chief executive, and Ashish Sohan Goyal, chairperson, executive director and group chief financial officer; The Rise Fund has a nominee director, and there are four independent directors (AP p.11).

11Who already owns it

Source: AP p.6.

76,411,956 preference shares will convert into up to 290,603,926 equity shares before the red herring prospectus (AP p.10).

On the document's fully diluted list, the holders of 1% or more also include Social Worth Technologies ESOP Management Trust 4.82%, IDG Ventures India Fund III LLC 2.70%, M/s Utkarsh 2.42%, Chiratae Growth Fund I 2.19%, Akshay Mehrotra 2.10%, Ashish Sohan Goyal 1.75%, Chiratae Trust 1.56% and Trifecta Leaders Fund-I 1.08% (DRHP p.110).

12What changed just before the IPO

• Share structure: a split to ₹5 face value and a 399-for-1 bonus issue in April 2026 (AP p.10).
• Exceptional item: ₹333.60 million of founders' stock-option tax paid by the company (DRHP p.49).
• Profit: more than doubled before the exceptional item (DRHP p.70).
• Borrowings: up 90% in FY26 (AP p.7, our arithmetic).
• Status and auditor: the split from ₹10 to ₹5 was approved in April 2026 and the 399:1 bonus shares were allotted in May 2026; the company became a public limited company in May 2026, and there has been no change of statutory auditor in the three years before the DRHP (DRHP p.85, DRHP p.228, DRHP p.76).

13Capacity and expansion

Growth is limited by capital and funding rather than plant. The proceeds go to the lending subsidiary's capital base (AP p.5).

14Market size and industry structure

The 1Lattice report cited in the offer document describes middle-income Indians as a segment with high digital adoption and underserved credit demand, sensitive to employment, wages and inflation (AP p.5).

15Competitive position

What the document claims, and what it rests on:

• Technology-led underwriting and collection (AP p.3).
• Repeat borrowers: 83.92% of eligible existing customers took repeat loans in FY25 (AP p.9).

Against that: unsecured lending, reliance on third-party digital channels, and funding needs (AP p.9).

16Peers the company named

Source: DRHP p.133. Peer ratios use prices on 25 June 2026.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Asset quality. Unsecured loans; impairment was ₹4,200 million in FY26 (AP p.8, DRHP p.70).
• New borrowers. A rising share of disbursements goes to first-time customers (AP p.9).
• Funding. The subsidiary must keep raising and refinancing debt (AP p.9).
• Rates. Interest-rate and maturity mismatches (AP p.9).
• Channels. Dependence on third-party digital and merchant platforms (AP p.9).
• Regulation. RBI capital and lending rules for the subsidiary (AP p.9).

18Litigation and regulatory matters

Source: AP p.12.

The company has no group companies (AP p.12). The auditors expressed no qualification (AP p.11).

19Related-party transactions

The company paid ₹333.60 million of perquisite tax on behalf of its founders in FY26 (DRHP p.49). Other related-party transactions were not read for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Write-offs by year, in the pages read.
• How much of the co-lent book the company guarantees, and at what cap.
• What the 794 criminal cases filed by the subsidiaries concern, in the pages read.
• Why the company, not the founders, paid the founders' option tax.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What were write-offs in FY25 and FY26, and how do they compare with the impairment charge?
2. How much first-loss guarantee exposure does the company carry on partner lenders' books?
3. Why did the company pay ₹333.60 million of its founders' personal tax?
4. How do loans to first-time borrowers perform compared with repeat borrowers?
5. How much capital will EarlySalary Services need beyond the ₹5,626 million from this issue?

2Sources and cited facts

This study was read from 2 documents the company filed. The 65 figures it cites are listed under the document each came from, with the page and the sentence as printed.