The upcoming NSE Emerge listing of Finance Buddha (Finbud Financial Services) brings a hybrid loan aggregation model to the market. But does its valuation justify the fundamentals when compared with My Mudra Fincorp, BLS E-Services, and PB Fintech?
Finance Buddha—officially incorporated as Finbud Financial Services —is a Bengaluru-based retail loan aggregation and distribution platform established in 2012. The company connects borrowers with banks and NBFCs through a hybrid acquisition model, combining an extensive agent-led network (≈ 85 %) with a growing digital channel (≈ 15 %). Its core revenue comes from personal loans (≈ 75 %), followed by business loans (≈ 21 %) and home loans (≈ 3 %).
Finance Buddha IPO, slated for 6 – 10 November 2025 on NSE Emerge, will raise about INR 71 crore via a fresh issue at INR 140 – 142 per share. There is no offer-for-sale component, underscoring that the proceeds will strengthen the balance sheet rather than provide promoter exits.
Finance Buddha’s anchor investors include well-known market participants such as Ashish Kacholia, Shankar V (CAMS Founder), and even the MS Dhoni Family Office—names that lend both visibility and market credibility.
Yet, in an ecosystem dominated by larger fintech and distribution players like PB Fintech (Policybazaar) and emerging retail lenders such as My Mudra Fincorp and BLS E-Services, the real question is whether Finance Buddha’s financial metrics and valuation multiples justify investor enthusiasm.
As the IPO approaches, valuation becomes the central focus for investors. Finance Buddha IPO peer comparison will examine the valuation ratios and liquidity metrics that determine whether Finance Buddha is competitively valued or over-stretched relative to its peers in India’s fintech distribution space.
Finance Buddha Peer Comparison Snapshot
Finance Buddha peer comparison table below presents a snapshot of core financial metrics for FY 2025, comparing Finance Buddha with its key industry peers. Figures are based on consolidated or standalone numbers as reported.
Core Financial Metrics
| Metric | Finance Buddha | My Mudra Fincorp | BLS E-Services | PB Fintech |
|---|---|---|---|---|
| Revenue | 223.28 | 80.36 | 519.35 | 4,977.21 |
| PAT | 8.50 | 9.01 | 58.81 | 353.16 |
| PAT Margin (%) | 3.81 | 11.21 | 11.32 | 7.10 |
| ROE (%) | 23.61 | 16.87 | 12.18 | 5.49 |
| ROCE (%) | 32.11 | 22.92 | 10.36 | 0.20 |
| EBITDA Margin (%) | 6.57 | 16.83 | 11.64 | 2.71 |
Finance Buddha’s revenue base (INR 223 crore) is larger than smaller peers like My Mudra but significantly below BLS E-Services and PB Fintech. While its ROE (23.6 %) and ROCE (32.1 %) outperform the industry average, its PAT margin (3.8 %) remains thinner—suggesting strong asset efficiency but modest operating leverage. The data positions Finance Buddha as a mid-sized, profit-making aggregator with room to enhance profitability through digital scaling.
Read Also: Finance Buddha IPO Review
Finance Buddha vs My Mudra vs BLS E-Services vs PB Fintech: Valution Snapshot
When comparing Finance Buddha valuations, the disparity across India’s fintech and loan-distribution ecosystem is striking. Finance Buddha sits between traditional financial distributors and high-growth digital platforms — giving investors both opportunity and caution.
Key Valuation Ratios
| Ratio | Finance Buddha | My Mudra Fincorp | BLS E-Services | PB Fintech |
|---|---|---|---|---|
| P/E (x) | 23.39 | 11.5 | 31.5 | 180 |
| P/B (x) | 23.39 | 1.94 | 3.62 | 12.9 |
| P/S (x) | 1.21 | 1.29 | 2.53 | 14.4 |
| D/E (x) | 0.51 | 0.07 | 0.01 | 0.05 |
| Current Ratio (x) | 2.22 | 10.1 | 1.32 | 4.28 |
| ROE (%) | 23.61 | 25.8 | 11.0 | 5.13 |
Analytical Summary – Valuation Perspective
At a price-to-earnings (P/E) multiple of ~23x, Finance Buddha positions itself in the mid-valuation band within the financial intermediation universe. Its valuation is nearly double that of My Mudra Fincorp (11.5x) — a smaller but more profitable player — and considerably below BLS E-Services (31.5x) and PB Fintech’s astronomical 180x, which reflects a premium for digital brand scale rather than profitability.
Despite its modest topline size, Finance Buddha’s ROE of 23.6% and ROCE of 32.1% underscore efficient capital deployment — metrics that compare favourably even against larger peers. However, this capital efficiency has come with moderate leverage (D/E 0.51x), whereas peers such as My Mudra (0.07x) and BLS (0.01x) operate almost debt-free.
Its P/B ratio of 23.39x looks inflated relative to the sector, potentially implying market optimism or early overvaluation risk, particularly given the company’s limited scale. A high price-to-book ratio can be justified only if growth continues at the same pace and profitability expands — something that remains to be proven post-listing.
On the other hand, the price-to-sales (P/S) ratio of 1.21x is comparatively conservative, suggesting the company is not overhyped on revenue expectations. This mixed valuation profile — premium on book, moderate on earnings — indicates investors are likely valuing Finance Buddha more for its growth narrative and brand positioning than for near-term margins.
Finance Buddha IPO Peer Comparison: Profitability & Operational Efficiency
Finance Buddha’s EBITDA margin of 6.6% is notably below My Mudra’s 16.8% and BLS E-Services’ 11.6%. The variance can largely be attributed to the company’s agent-heavy customer acquisition model, which inflates operating costs compared to digital-only peers.
Similarly, its PAT margin of 3.8% trails behind all peers, highlighting thinner bottom-line profitability despite healthy revenue growth. However, this margin profile is not uncommon for loan-origination platforms in transition. Finance Buddha’s hybrid structure still depends heavily on human channels — roughly 85% of its business — though management has indicated rising digital adoption.
What offsets the margin gap is consistent top-line growth: between FY23 and FY25, revenue climbed from INR 135 crore to INR 223 crore, a CAGR of around 28%. Moreover, return metrics remain robust — implying that despite modest margins, capital turnover is high, and management has been able to extract strong returns per rupee invested.
In short, while Finance Buddha lags in operational efficiency, it compensates through scale expansion, capital productivity, and a visible deleveraging trend — ingredients that could gradually improve profitability if digital penetration deepens.
Finance Buddha IPO Peer Comparison: Balance Sheet Strength & Liquidity
Finance Buddha’s balance sheet reveals a company that has gradually deleveraged and improved solvency ratios in the run-up to its IPO. Its Debt-to-Equity (D/E) ratio declined from 1.21 in FY23 to 0.51 in FY25, signalling deliberate debt reduction and prudent financial management. This moderation allows the company to retain operational flexibility while still leveraging for growth.
The Current Ratio of 2.22x demonstrates sound short-term liquidity, indicating that current assets comfortably cover short-term liabilities. However, in comparison, My Mudra Fincorp’s 10x current ratio shows an exceptionally liquid balance sheet, while BLS E-Services (1.32x) and PB Fintech (4.28x) remain comfortably solvent.
Overall, Finance Buddha’s balance-sheet position can be described as healthy but not excessive—strong enough to fund operations and expansion without over-reliance on borrowings. The IPO’s proceeds, being entirely a fresh issue, should further enhance the company’s capital adequacy and working-capital cushion.
Business Model Insights
Finance Buddha operates on a hybrid model—approximately 85% agent-led and 15% digital—bridging India’s traditional loan distribution networks with digital lending ecosystems. This structure gives the firm deep regional penetration in semi-urban markets, particularly in Karnataka, Maharashtra, Telangana, and Tamil Nadu.
However, the same model introduces higher operating costs and limits scalability compared to fully digital peers. Competitors such as PB Fintech, through Policybazaar and Paisabazaar, run asset-light digital models that achieve far superior operating leverage.
Another challenge is revenue concentration: the top five lenders contribute nearly 48.5% of total income. This reliance increases counterparty risk and exposes the company to changes in partner lending behaviour or credit cycles.
That said, Finance Buddha’s diversified lender base of banks and NBFCs—nearly an even 46:54 split—adds resilience. The company’s incremental digital push, particularly in lead generation and credit scoring, suggests potential margin improvement once digital contributions scale beyond the current 15%.
Finance Buddha vs My Mudra vs BLS E-Services vs PB Fintech: Strengths & Concerns
Strengths 🟢
- Consistent growth trajectory: Revenue grew from INR 135 crore (FY23) to INR 223 crore (FY25), 28 % CAGR.
- Healthy ROE and ROCE: At 23.6% and 32.1%, respectively—among the best in the peer set.
- Balanced leverage: D/E of 0.51 reflects financial discipline.
- Strong investor confidence: Prominent shareholders include Ashish Kacholia, Shankar V (CAMS CEO), and the MS Dhoni Family Office.
- Focused geographic presence in key high-growth loan markets of southern India.
Concerns 🔴
- Thin margins: EBITDA (6.6%) and PAT (3.8%) trail all listed peers.
- High P/B valuation (23×) appears stretched relative to book value.
- Revenue concentration risk among top lenders (≈ 48%).
- Limited digital scalability: Agent dependency curbs margin expansion potential.
- Smaller scale vs. digital leaders: Revenue base remains a fraction of PB Fintech or BLS E-Services.
Conclusion
“Finance Buddha’s fundamentals portray a growing but margin-constrained loan aggregator that’s transitioning toward a digital model. Finance Buddha IPO valuation appears fair on earnings yet expensive on book value, reflecting investor faith in its hybrid strategy and long-term digital upside. Backing from marquee investors lends credibility, but profitability metrics caution against exuberance.”
In summary, Finance Buddha offers investors a moderate-growth, mid-valuation play within India’s fintech-distribution landscape—less speculative than PB Fintech, but also less operationally efficient than My Mudra Fincorp or BLS E-Services. Success will depend on whether the company can accelerate its digital shift and improve margins without diluting growth momentum.
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