Press Release March 31, 2026 FINCFRIENDS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB- | Stable | Assigned	-
Non Convertible Debentures (NCD)	50.00	ACUITE BBB- | Stable | Assigned	-
Commercial Paper (CP)	25.00	-	ACUITE A3+ | Assigned
Total Outstanding	125.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­Acuite has assigned the short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) to the Rs. 25.00 Cr. Proposed Commercial Paper Facilities of Fincfriends Private Limited. ­­Acuite has assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to the Rs. 50.00 Cr. Proposed Non convertible debentures of Fincfriends Private Limited. The Outlook is 'Stable'. ­­Acuite has assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to the Rs 50.00 Cr. Proposed Bank loan Facilities of Fincfriends Private Limited. The Outlook is 'Stable'.  Rationale for Rating The rating factors in the healthy capitalisation level along with growth in disbursement and AUM. The networth of  the company for FY 25 stood at Rs 214.78 Cr. as against Rs 154.20 Cr. in FY24 ( FY23: Rs 49.04Cr.).The networth of the company stood at Rs 286.69 Cr. as of December 31, 2025. The company had external commercial borrowings (ECBs) of approximately Rs 200 Cr from its group entities, which are expected to be converted into equity in FY26.The  disbursements increased from Rs. 1347.53 Cr. in FY 24 to Rs 2586.93 Cr in FY25 (Rs 495.94 Cr in FY23), AUM increased from Rs 304.08 Cr. in FY24 to Rs.613.42 Cr. in FY25. While the PAT has marginally declined from Rs 66.22 Cr. in FY24 to Rs 60.58 Cr. in  FY 25, it has seen significant improvements from FY 23 which stood at Rs 6.44 Cr. For 9MFY 26, the company's disbursements increased to Rs.2749.94 Cr. with an AUM contributing to Rs 917.64 Cr. The company reported a PAT of Rs 71.91 Cr. as of December 31, 2025. However, the rating is constrained due to concentration in the borrowing profile and elevated credit costs, given the company operates with a business model focused primarily on extremely short term unsecured loans, with a policy to write off for accounts overdue beyond 90 days. While there is robust growth the high writeoffs,  concentrated funding could impact the profitability and long term growth of the company. The company has seen an improvement in the write off to disbursements, from 14.06% in FY 25 ( 8.65 % in FY 24)  to 9.45% as of 9MFY26. However, this parameter would be key monitorable to determine profitability.  Acuite believes that near to medium term trends in credit cost and collection efficiency are key monitorables which could impact growth sustainability.

About the company

­­­­Incorporated in 2017, Fincfriends Private Limited is engaged in delivering alternative financial services and provide loans and financing solutions to individual customers. The Directors of the company are Mr. Dmitry Kislyakov, Mr. Sergey Yadchenko, Mr. Vijay Dhingra and additional Independent Director Mr. Jagdish Prasad. The Registered office is located at Gurugram.

About the Group

­­­­­APV Management PTE Limited Based in Singapore; Incorporated in 2015, APV Management PTE Limited operates as an investment firm. The company holds 81.67 % stake in Fincfriends Private Limited as of March 31, 2025. The day-to-day operations are managed by Olga Tsiama. Silvercase Pacific PTE Limited Based in Singapore; Incorporated in 2015, Silvercase Pacific PTE Limited is engaged in investment consulting, financial technology innovations.The company holds 18.33 % stake in Fincfriends Private Limited as of March 31, 2025. The day-to-day operations are managed by Ioannou Miltos.

Unsupported Rating

­­­­Not Applicable

Analytical Approach

­Acuite has considered the standalone financial and business risk profile of Fincfriends Private Limited (FPL) to arrive at the standalone rating.

Key Rating Drivers

Strength

­­­­Improvements in Earning Profile  The growth in the company's portfolio is owing to significant scale of disbursements in FY24 and FY25. The NBFC asset under management grew to Rs 613.42 Cr. for FY25 as against Rs 304.08 Cr. in FY 24, registering a 101.73% y-o-y growth.The disbursements have increased to Rs 2586.93 Cr. for FY25 from Rs 1347.53 Cr in FY24 (FY 23: Rs 495.94 Cr.). The company has been profitable from FY 22 with a  PAT of  Rs 15.39 Cr which increased to Rs 66.22 Cr. in FY24 (FY23: Rs 6.44Cr.) while saw a slight decline for  FY 25 with a PAT at Rs 60.58 Cr.  For 9MFY 26, the disbursements stood at~ Rs 2749.94 Cr, with an AUM of Rs 917.64 Cr and an interest income of Rs 221.67 Cr and PAT of Rs 71.91 Cr for 9MFY26. The disbursements are majorly done to repeat customers (75-80%) while the remaining to new customers.  Healthy Capitalisation levels  The CAR for FY25 stood at 33.02% as against 47.17%  in FY 24 (FY23: 91.84%). The company’s net worth improved significantly to Rs. 214.78 Cr. in FY25, as against Rs.154.20 Cr. in FY24 (FY23: Rs 49.04 Cr.). The company had external commercial borrowings (ECBs) of approximately Rs 200 Cr. from its group entities, which are expected to be converted into equity in FY26. This planned conversion is anticipated to materially improve the company’s net worth as well as strengthen its CAR in FY26. Given the current capital position and the reliance on timely equity infusion, this conversion and the resultant impact on capitalisation remain key monitorables for the company.

Weakness

Growth sustainability risk with rising write offs and asset quality The company follows a policy of writing off all stressed assets once they cross 90 days past due, resulting in reported GNPA and NNPA levels remaining Nil till FY24. However, given the very short tenure of its flexi loans and instalment loans (2 months, 3 months, 4 months, 5 months and 6 months), the also provides longer tenure loans in the 9-12 month tenure which is expected to increase further, the write-offs as a percentage of annual disbursements remain an important indicator of portfolio quality. This ratio stood at 16.01 % in FY23, improved to 8.65 % in FY24, but increased again to 14.06% in FY25. The company is currently transitioning towards longer-tenure products of 18–24 months. The impact of this shift on write-offs, overall asset quality, and total income—comprising interest income, processing fees, and service fees—will be a key monitorable going forward. The company reported a GNPA and NNPA of 0.07 % and 0.04% respectively for FY 25, however this saw an increase to 2.04% and 1.02%  respectively for 9MFY 26, the increase in GNPA was due to the restructured book of ~Rs 18 Cr. which the company is in testing phase to offer customers a one-time restructuring option for accounts between 31-90 DPD, these accounts categorised as substandard assets subsequently reflect the GNPA of ~Rs 18 Cr. as of December 31, 2025. ­­­­Limited Resource Profile Fincfriends has a limited resource profile, with the borrowings comprising of External Commercial Borrowings, NCD and Term Loans. As of FY 25, the company has major borrowings in the form of external commercial borrowings from its holding companies: APV Management PTE Limited and Silvercase Pacific PTE limited ( both based in Singapore) while have a smaller proportion of borrowings in India from a small number of lenders.  The total debt for FY 25 stood at Rs 281.40 Cr. which increased from Rs 39.53 Cr. in FY24 ( FY23: Rs 7.78 Cr.). The company's exposure to ECBs are expected to reduce and the existing ECBs  of approximately Rs 200 Cr. are expected to  be converted to equity. Despite this, the company continues to exhibit a limited and concentrated resource profile. Its borrowings are primarily in the form of NCDs from group entities and term loans from NBFCs for 9MFY26 with limited lender diversification. The concentration of funding sources and the absence of a broad, institutional lender base remain key credit considerations.

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

­Continued scale-up of the loan book supported by stable or improving asset quality indicators, including early-bucket delinquencies, 90+ DPD. Demonstrated strengthening of the earnings profile through improved operating efficiency, stable credit costs, and consistent profitability Broadening and deepening of funding sources with increased access to diversified bank lines

Potential triggers (individual or collective) for a downward rating action:

­High gearing and low liquidity buffer Write off to disbursements should not exceed 10.5%

Liquidity Position

Adequate

­­­­The company had adequate liquidity position with no negative cumulative mismatches for the medium term as per the ALM of December 31, 2025. The company has  cash and bank balances of Rs. 39.22 Cr. as on December 31, 2025  as against Rs 105.13Cr. for FY 25.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

Particulars Unit FY25 (Actual) FY24 (Actual) Total Assets Rs. Cr. 746.50 334.99 Total Income* Rs. Cr. 735.64 343.67 PAT Rs. Cr. 60.58 66.22 Net Worth Rs. Cr. 214.78 154.20 Return on Average Assets (RoAA) (%) 11.20 30.89 Return on Average Net Worth (RoNW) (%) 32.84 65.16 Debt/Equity Times 1.31 0.26 Gross NPA (%) 0.07 0.00 Net NPA (%) 0.04 0.00 * Total Income is equal to Net Interest Income plus other income

Status of non-cooperation with previous CRA (if applicable):

None

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Commercial Paper: https://www.acuite.in/view-rating-criteria-54.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

­Not Applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable Not avl. / Not appl. Proposed Commercial Paper Program Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE A3+ | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nattasha Venkatesh Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

­Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.