Orange Retail Finance
Chennai-based Orange Retail Finance has raised Rs 100 crore in debt and added a Rs 100 crore co-lending partnership with Shriram. The funding is intended to support a shift from two-wheeler loans towards gold loans and loans against property for micro, small and medium enterprises (MSMEs).
Debt issue and Shriram partnership
The debt was raised through listed non-convertible debentures (NCDs) arranged with UMI Capital. It represents half of a Rs 200 crore NCD programme for this financial year, within a wider Rs 300 crore debt target that Orange plans to meet through further issuances and borrowing from banks and other institutions.
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The Shriram partnership gives Orange Rs 100 crore to lend without placing the full amount on its own balance sheet. In co-lending, the larger partner takes most of each loan onto its books, while the smaller non-banking financial company (NBFC) originates it, manages the customer relationship and retains a minority share. The model is used by non-bank financial institutions.
- Rs 100 crore raised through listed NCDs arranged with UMI Capital.
- Rs 100 crore co-lending partnership added with Shriram.
- Rs 200 crore NCD programme and Rs 300 crore overall debt target for this financial year.
- Three NBFC partners accounted for roughly Rs 101 crore of Orange’s loan book as of June, according to ICRA.
Loan book shifts beyond two-wheelers
Co-lending already funds about a quarter of Orange’s outstanding loans. The company had Rs 401 crore in assets under management (AUM) as of 30 June 2026 and is targeting Rs 550 crore by the end of this financial year, requiring growth of roughly 37% in the remaining months.
Loans against property accounted for 58% of the book in June, ahead of two-wheeler loans at 41%; six months earlier, the proportions were reversed. Gold loans are a newer, smaller part of the portfolio, and Orange says every branch will have gold-loan infrastructure by October 2026.
Branch expansion and longer-term target
Orange began 13 years ago as a Chennai lender financing two-wheelers sold through dealerships. It now operates 58 branches across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana, and plans to grow to 150 branches and about 1,500 employees.
The lender’s longer-term ambition is Rs 3,000 crore in AUM by FY31. It has also said demonetisation in 2016 and the COVID-19 years prompted it to rebuild its credit and risk frameworks and move away from a dealer-led model.
