PACRA assigns Entity Ratings to Abhi (Pvt.) Limited

Abhi (Pvt.) Limited ("Abhi" or "the Company") has emerged as a key player in the country’s fintech sector with a financial wellness platform designed for individuals and businesses. Committed to promoting financial inclusion, Abhi offers credit-bridging solutions backed by customers’ earned revenues. The Company has raised approximately USD 30 million from leading venture capital funds. Risk assessment policy and credit scoring models are in place to manage risks effectively across its product portfolio. This policy outlines the roles of the Board, Risk and Compliance Committee, management, and relevant departments in risk oversight, ensuring alignment with the Company’s risk appetite. In CY24, Abhi collaborated with EduFi, Food Panda, Daraz, DigiKhata, and Amadeus to launch new credit facilities. These partnerships leverage data points, such as payout data and credit scoring models, to determine loan eligibility and limits, aligned with Abhi’s risk policy. Additionally, Abhi partnered with Abhi Payriff Private Limited (an associated company specializing in payment solutions for businesses and merchants), enhancing its offerings through advanced payment gateway aggregation, customized payment solutions, and support for digital transactions via credit cards, debit cards, net banking, and other methods. The audit for the period ended on Dec'24 is in process and is expected to be completed by Mar'25. As per the management accounts for the period ended on Dec'24, the Company’s innovative products have contributed to a revenue base of PKR 2.2bln for the period ended Dec’24 (Dec’23: PKR 2.3bln), with profitability after tax reported at ~PKR 288mln (Dec’23: PKR 300mln). The slight dip in profitability is primarily attributed to provisions and write-offs related to the travel business. Abhi mitigates product concentration risk by ensuring revenue from a single product line does not exceed 70% of total operating revenue. Furthermore, the EWA facility is exclusively offered to employees of pre-qualified customers, with a cap of 5% of net equity and subordinated debt for cumulative exposure to any single customer. The Company’s total credit exposure stood at ~PKR 6.1bln at end-Dec’24, supported by an equity base of ~PKR 2.9bln (Dec’23: PKR 2.6bln). A detailed shareholders’ agreement underscores the long-term commitment of co-founders and sponsors, complemented by a robust governance structure that includes independent directors.
Looking ahead, as represented by the management, Abhi acquired a majority stake of 61.61% in FINCA Microfinance, while TPL Corp Limited retains 33.17%. The acquisition was financed with the support of Abhi Holding, which provided an SBLC in favor of Abhi (Pvt.) Limited. This strategic move bolsters Abhi’s presence in the microfinance sector, enabling it to serve micro-entrepreneurs and low-income individuals through small-ticket loans and financial solutions.
PACRA will closely monitor Finca's transaction to assess its impact on Abhi’s financial performance, growth trajectory, and operational efficiency. Adherence to the agreed rating parameters and Prudent management of credit risk would remain imperative.

About the Entity
Abhi (Pvt.) Limited is a fintech startup with an NBFC license incorporated under the Companies Act, 2017 on April 20, 2021. The Company is 99.99% owned by Abhi Fintech Limited, which in turn is 100% owned by Abhi Limited. Abhi Limited is primarily owned by the co-founders - Mr. Omair Ansari (16.97%) and Mr. Ali Ladhubhai (16.23%) while the remaining shares are owned by renowned VCs.