Kome-On Communication secures ₹2 crore debt from Avance Ventures at 24% interest

What's the deal? Kome-On CommunicationDealroom has a profile for this one. Try Dealroom → Ltd reported a net loss of ₹0.89 crore for the financial year ending March 31, 2026 — on zero revenue. The company's total equity has turned negative at ₹-1.04 crore. Its board also approved a ₹2 crore unsecured loan from Avance Ventures Private Limited, carrying a steep 24% annual interest rate over five years.

Why now? The company's losses widened sharply from just ₹0.01 crore in FY25, driven almost entirely by professional fees that surged to ₹0.81 crore in Q4 FY26. With no revenue, no inventory, and no investment in property or equipment, Kome-On Communication had no internal resources to draw on.

The ₹2 crore loan, approved on March 31, 2026, is meant to fund business operations and working capital — suggesting the company needs outside money simply to keep the lights on.

What could go wrong? Nearly everything. A company generating zero revenue now carries ₹2 crore in high-cost debt at 2% per month. Servicing that loan without any income is a tall order.

The negative net worth raises going-concern questions. The spike in professional fees — which made up the bulk of annual expenses — also warrants scrutiny, as it is unclear what services drove such costs for a company with no operational activity.

The signal: Dealroom classifies Kome-On Communication as a "breakout" stage company, yet its financials tell a starkly different story — zero revenue, negative equity, and a reliance on a 24% interest loan from Avance Ventures, an investment fund whose own track record in reviving dormant entities remains unclear. The disconnect between that growth-stage label and the company's shell-like reality underscores how micro-cap listed firms can obscure genuine distress behind optimistic categorisations.

Read more: Whalesbook