OnMobile raises US$8.83M in debt at nearly 14% interest
What's the deal? OnMobile GlobalDealroom has a profile for this one. Try Dealroom → has raised US$8.83M (roughly $6.8 million) through a private placement of secured, non-convertible debentures (NCDs), the mobile entertainment firm said. The paper carries steep coupon rates of 13.60% and 13.88% and matures on July 5, 2029.
The details: OnMobile issued two series — US$5.43M of Series A debentures at 13.60% and US$3.4M of general NCDs at 13.88% — both with tenures up to 36 months. The company pledged 100% of the shares of its subsidiary, OnMobile Singapore PTE. LTD., to secure the debt.
Why now? The raise follows a June 2026 board approval for a larger US$13.6M NCD programme and reflects a shift toward high-yield private debt. OnMobile has chosen debt over equity to fund its digital gaming and mobile entertainment expansion while avoiding dilution.
What could go wrong? The near-14% coupons mark a substantial interest burden for a company that reported a consolidated net loss of about US$4.96M in the March 2026 quarter. Penalty clauses of 2% per month could strain liquidity in a default, and the share pledge limits future options for the Singapore unit.
The signal: OnMobile's rates sit at the high end even among Indian mid-cap corporates tapping NCDs at double-digit coupons. The deal is a test of investor appetite for funding a loss-making turnaround story — at a steep cost of capital.
Read more: Whalesbook
Image credit: ITU Pictures
