Paisalo Digital embarks on AI-led transformation to double growth in three years

Yash Agarwal — Wed, 22 Apr 2026 04:06:45 +0000

Paisalo Digital Limited, a prominent non-banking financial company (NBFC) in India, has announced its strategic transition to a fully AI-powered lending platform. This move is aimed at achieving significant growth, enhanced profitability, and scalability, with the company targeting a twofold increase in assets under management (AUM), revenue, and profit after tax (PAT) over the next three years.

The transformation is comprehensive, involving the integration of AI across all facets of the company’s operations. Paisalo has already implemented advanced AI infrastructure, including two high-performance NVIDIA AI chips and an immersion-cooled AI server. This setup supports over 350,000 AI-driven customer interactions daily in multiple languages, providing a substantial data advantage that facilitates continuous learning and improved customer engagement.

Paisalo’s AI transformation spans the entire credit lifecycle. In customer acquisition and onboarding, AI-led sourcing engines are enhancing borrower quality while reducing costs. The digital onboarding process, utilising eKYC and Account Aggregator frameworks, has significantly cut down loan processing times from days to mere minutes.

In underwriting and credit decisioning, Paisalo employs a proprietary AI/ML credit engine that integrates various data sources for real-time approvals and dynamic pricing, thereby boosting fraud detection and risk-adjusted returns. The company’s portfolio and risk management are strengthened through advanced predictive analytics, enabling early stress signal detection and improved collections efficiency.

Paisalo’s AI-native infrastructure, featuring cloud-native architecture and AutoML pipelines, is designed to be scalable and compliant with RBI regulations, allowing for exponential growth without proportional cost increases.

Deputy Managing Director Santanu Agarwal commented on the transformation, stating, “Our transition to an AI-first lending platform marks a significant shift in our operating model. With AI embedded across acquisition, underwriting, and servicing, we are poised to scale rapidly, enhance margins, and deliver industry-leading returns. This sets the foundation for our vision of doubling AUM, revenue, and profitability over the next three years.”

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Paisalo partners with Indian Overseas Bank to expand BC network

Kinjal — Wed, 25 Mar 2026 08:08:50 +0000

Paisalo Digital Limited, a prominent NBFC focused on inclusive lending, has announced its appointment as a Business Correspondent (BC) partner for Indian Overseas Bank (IOB). This partnership marks a significant expansion of Paisalo’s Banking‑as‑a‑Service (BaaS) platform, which already includes partnerships with State Bank of India (SBI) and Bank of India (BOI).

By adding Indian Overseas Bank to its BC partner network, Paisalo strengthens its role as a key player in delivering last‑mile banking and financial services. The company leverages its extensive on‑ground network and technology-driven operating model to provide banking services to underserved and underbanked communities across rural and semi‑urban India.

Paisalo’s BC network facilitates the delivery of essential banking services such as account opening, deposits and withdrawals, remittances, and social security schemes. It also acts as a trusted local interface for customers entering the formal financial ecosystem.

The strategic rationale behind this partnership with Indian Overseas Bank supports Paisalo’s long-term strategy in several ways:

– Multi-bank BC platform: Enhances Paisalo’s position as a bank-agnostic BaaS partner with diversified public-sector banking relationships.
– Capital-light scalability: Enables network expansion and customer engagement without incremental balance-sheet risk.
– Customer lifecycle monetisation: Strengthens early-stage customer relationships, creating a structured funnel for future cross-sell and credit demand.

This development aligns with Paisalo’s broader strategy of building a high‑tech, high‑touch distribution architecture that integrates physical presence with digital capabilities. The BC network complements Paisalo’s branch and distribution point infrastructure, enabling efficient customer acquisition, service delivery, and relationship deepening at scale.

Commenting on the development, Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, stated: “Our appointment as Business Correspondent for Indian Overseas Bank represents a strategic progression of our multi-bank Banking-as-a-Service platform. We view the BC business as a long-duration franchise, anchored in customer lifecycle engagement rather than transactional distribution. The addition of Indian Overseas Bank strengthens the durability of this franchise and enhances our ability to participate meaningfully in customers’ evolving financial needs.

Being onboarded by another bank is also a validation of the maturity of our compliance, operating, and governance frameworks. As we scale our distribution footprint, such partnerships allow us to deepen engagement and build long-term monetisation while preserving a capital-efficient growth model. With SBI, Bank of India, and now Indian Overseas Bank, our BC platform continues to evolve into a resilient, multi-bank ecosystem delivering sustained value to all stakeholders.”

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

This article is written by Kinjal and reviewed by Aman Shukla before publication.

Santanu Agarwal | Business Upturn

Paisalo Digital embarks on AI-led transformation to double growth in three years

Paisalo partners with Indian Overseas Bank to expand BC network