Purple Finance Bonds

Purple Finance Limited is a Mumbai-headquartered NBFC that began retail operations only in 2022 and reached the stock market through a merger with the listed Canopy Finance in FY24, listing in June 2024. It lends secured to micro, small and medium enterprises in tier-2 and tier-3 cities, taking residential or commercial property as collateral, with an average ticket size around Rs 6 lakh, tenures of about seven years, interest rates between 18% and 24% and an average loan-to-value near 44%. Borrowers are largely self-employed people, cash-salaried workers and daily wagers. Operations span six states, with Maharashtra alone at 46% of the book and Madhya Pradesh at 24%. Assets under management were Rs 163 crore as of September 2025, so this is a very small lender. Two things deserve weight: India Ratings notes the company is still incurring operating losses and has yet to reach sustainable profitability, and the loan book has not been through multiple business cycles. Against that, capitalisation is strong after two rights issues, with a Tier 1 capital adequacy ratio of 43.13% and leverage of 1.21 times.

Purple Finance's listed bonds carry a BBB- credit rating from India Ratings; as of 30 Sep 2025 the company reported AUM of Rs 163 crore and capital adequacy of 43.13%. A credit rating measures the chance of default, not price stability, and corporate bonds are not covered by DICGC deposit insurance. Read the issuer's latest rating rationale before you invest.

As of Sept 2026, the 1 listed Purple Finance bond yields about 11.25% (average 11.3%), against roughly 6-7% on a comparable bank FD.