AvenuesAI admits AI adoption is slow, scraps own lending plans
The company now takes minority stakes in digital lenders instead of building its own loan book. Revenue surged 103% but management's credibility took a hit on the call.
— 2 earlier stories on AvenuesAI Ltd. →What's new
- Management conceded enterprise AI adoption is much slower than its prior forecasts.
- The company reversed course on lending, abandoning plans for its own NBFC for minority stakes in lenders.
- Analysts challenged management on repeated international revenue target misses and capital allocation.
Why this matters
AvenuesAI just told the market that its biggest growth narrative was overhyped, then pivoted its entire lending strategy in one call. The 103% revenue surge makes the admissions starker. Strong growth is being generated by a business whose future drivers are being quietly downgraded.
What we're watching
- The new minority-stake lending model's contribution to future revenue.
- Any further revisions to the international revenue guidance after repeated misses.
- Whether the slowdown in AI adoption prompts a valuation derating.
The full read
AvenuesAI's year-old bull case just got a rewrite. The company admitted its enterprise AI adoption forecasts were too optimistic, a narrative that supported premium valuations. It simultaneously abandoned plans to build its own lending book, pivoting to minority stakes in digital lenders like Ratnaafin. The strategic reversal comes amid strong financials: full-year revenue hit ₹8,116 crore, up 103%. That disconnect between stellar results and fading growth drivers is the core issue. Analysts on the call pressed management on credibility, pointing to missed international targets and spending at associate entities. The admission that AI is a slower burn than sold forces a reset of the growth models that priced in rapid takeoff from that very business.
Questions answered
- What did AvenuesAI admit about its AI business?
- Management said enterprise AI adoption is progressing much slower than its previous projections, which had driven the company's growth narrative.
- How did the lending strategy change?
- The company pivoted from planning its own NBFC to an 'asset-light' model, taking minority stakes in digital lenders like Ratnaafin and Online PSB Loans to use their credit infrastructure.
- What did analysts press management on?
- Analysts from firms including Dolat Capital and Novaise raised concerns about management credibility, citing repeated revisions to international revenue targets and capital allocation to associate companies.
- What was the headline financial result?
- AvenuesAI reported full-year revenue of ₹8,116 crore, a 103% increase year-over-year.
Story so far
All notes on CCAVENUE →- 29 May 2026 · 7:18 PM IST AvenuesAI admits AI adoption is slow, scraps own lending plans
- 1d ago AvenuesAI commits ₹132.25 cr to pivot into lending
- 1d ago AvenuesAI beats FY26 guidance with ₹332 crore profit