Choice International is getting a serious cash injection.
This isn't just pocket change—it's growth capital specifically earmarked to expand the margin trading facility (MTF) book, alongside investments in technology and talent. Other +2
Here's the thing: MTF is a balance-sheet-heavy business. It involves lending money to clients against the shares they hold. It's profitable because of the interest earned, but it's also risky. If the market crashes and collateral values drop, losses can pile up fast. Fresh equity helps because it reduces reliance on borrowed funds, potentially lowering interest costs and making the business more stable. However, the deal is expected to close within 12 months, so this money likely hasn't hit the Q2 FY27 books yet. Other
Choice's Q2 FY27 numbers look impressive at first glance. Total income grew 33% year-on-year to ₹3,790 million, while profit after tax (PAT) climbed 23% to ₹695 million. But dig a little deeper, and the picture gets nuanced. Investor Presentation
This includes government consulting and IPO mandates. The company boasts an advisory order book of ₹710 crore and 24 ongoing IPO mandates. This diversification is smart—it reduces reliance on volatile trading volumes—but advisory income can be lumpy. One big project or a burst of IPO activity can spike revenue, only to normalize later. Investor Presentation
Then there's the margin question. The PAT margin for Q2 FY27 stood at 18.3%, down from about 19.9% in the same quarter last year. Why? Costs are rising faster than revenue. Employee costs jumped to ₹1,121 million from ₹772 million, and administrative expenses rose to ₹1,363 million from ₹1,079 million.
The Q2 numbers suggest that story is still unfolding. Investor Presentation +1
Choice now has 13.79 lakh demat accounts, up 14% year-on-year. But here's the catch: only about 242,000 are active, growing just 0.4%. That means roughly 83% of accounts are dormant. This is both a challenge and an opportunity. The challenge is waking them up. The opportunity is cross-selling. Client assets under custody have swelled to ₹66,300 crore, and the MTF book has grown 42% to ₹463 crore. Investor Presentation
The MTF book is still small relative to assets—less than 1%—so there's plenty of room to grow, especially with the new capital. However, broking revenue is growing slower than assets, suggesting that revenue earned per rupee of client assets might be under pressure, possibly due to competitive brokerage rates. Investor Presentation +1
Vartis Platforms, the parent of LenDenClub, is making a bold pivot. It has launched UdhaarSaathi, a lending service provider targeting kirana stores and micro-merchants with collateral-free loans ranging from ₹15,000 to ₹2.5 lakh. The target is ambitious: ₹1,000 crore in disbursements by the end of FY27.
This is a different beast from LenDenClub, which is an RBI-registered peer-to-peer (P2P) lending platform. In the P2P model, individual lenders lend directly to borrowers, and the platform facilitates the match. Lenders bear the credit risk, not the platform.
This asset-light model is less capital-intensive and shifts the risk of default to the lending partners.
The risk appetite here is high, but it's the partners' appetite, not Vartis's. The loans are unsecured and target a segment that often relies on informal moneylenders. The app listing shows an illustrative interest rate of 33.84% per annum, which reflects the high risk and short tenure of these loans.
The big question is whether UPI QR transaction data can actually make this lending safer. The theory is sound. Daily transaction records from QR codes provide a real-time view of a merchant's cash flow, which can be a powerful proxy for creditworthiness. UdhaarSaathi's eligibility criteria explicitly mention accepting QR or UPI payments.
However, data has limits. It only captures transactions through the specific QR code the lender sees. A merchant using multiple QR codes or dealing heavily in cash might look weaker or stronger than reality. Also, data shows cash flow, not the merchant's other debts or willingness to repay. Industry commentary highlights that treating merchant acquiring merely as a "payments utility" rather than a core business asset is a strategic mistake for lenders. Vartis is trying to turn that utility into a credit scoring tool, but the effectiveness will depend on the sophistication of its underwriting models and the quality of data sharing with partner NBFCs.
Avis India is expanding its premium group mobility portfolio by introducing customised Force Urbania vans in Delhi NCR, Mumbai, and Bengaluru. These vans seat 9-11 passengers and are chauffeur-driven, targeting corporate groups, destination weddings, and events.
This move complements Avis's existing fleet of luxury people-movers like the Mercedes-Benz V-Class, Toyota Vellfire, and Kia Carnival. The strategic logic is clear. The V-Class and Vellfire are premium, high-cost vehicles suited for small, high-value groups. The Urbania offers a more accessible option for larger groups, allowing them to travel together in a single vehicle rather than coordinating multiple cars.
Avis owns and operates these vans directly, which gives it control over maintenance and chauffeur standards—a key differentiator for corporate and event clients who value reliability. The company is betting that this integrated service model, backed by its 24/7 support infrastructure, will strengthen its position in the premium mobility market.
Avis is positioned at the premium end, particularly for corporate clients and international travelers.
The addition of Urbania vans helps Avis compete for group business, but it also steps into a space with many local operators. Pricing power is a question mark. Avis's own website currently advertises discounts of up to 25-40%, suggesting it uses promotions to drive demand. The vans could improve fleet utilization by filling gaps between premium car bookings, but wedding and event demand is seasonal, which could lead to uneven utilization.
All three companies are navigating a shifting regulatory and macro landscape.
SEBI has proposed scrapping the 12.5% Long-Term Capital Gains (LTCG) tax for Foreign Portfolio Investors (FPIs) and allowing tax-neutral mutual fund switches. This could indirectly benefit Choice by boosting foreign inflows and market activity, lifting trading volumes and IPO fees. However, experts caution that tax cuts alone won't reverse FPI outflows; earnings growth and currency stability matter more.
For Vartis, the RBI's Digital Lending Directions, 2025, are a critical factor. These regulations mandate direct fund flows between borrowers and lenders, standardized disclosure of interest rates (APR), and strict data privacy norms. UdhaarSaathi's model of earning fees on repayments and its high interest rates will need to align with these rules. The Directions also restrict Default Loss Guarantee arrangements, which could impact how Vartis structures partnerships with NBFCs.
On the macro front, the RBI has held the repo rate steady, with some sources indicating 5.25% and others 5.50% as of late 2026. Higher rates increase funding costs for MTF books and NBFC partners. A weakening rupee, a concern for FPIs, adds another layer of risk for market-linked businesses like Choice. For UdhaarSaathi, inflation and currency volatility can squeeze merchant margins, potentially increasing default risk even as demand for working capital remains high.
Choice International is using fresh capital to deepen its capital-intensive MTF business while leaning on advisory to diversify income. Vartis Platforms is pivoting from P2P to an asset-light merchant lending model, betting on data to manage risk in a high-yield segment. Avis India is broadening its premium fleet to capture group mobility demand, aiming to leverage its operational strengths in a competitive market.
Each strategy has its merits and its risks. Choice must prove it can grow its MTF book without eroding margins. Vartis needs to show that UPI data can reliably predict repayment in the micro-merchant segment. Avis has to demonstrate that adding vans can boost utilization without diluting its premium brand. As these stories unfold, the common thread is a push for growth in India's evolving financial and mobility landscapes, backed by capital, data, and service differentiation.
