Aye Finance, a microfinance company known for its contributions to small and medium-sized enterprises, is planning to go public in fiscal year 2026. The company is expected to file a draft plan with the Securities and Exchange Board of India (SEBI) by October-end or early November, which will mark a significant milestone in the company’s journey.
Aye Finance has seen exceptional growth over the years. The company’s operating revenues grew 44.5% to Rs 623 crore and profits to Rs 54 crore in FY23. In FY24, revenues grew 67% to Rs 1,072 crore and profits tripled to Rs 161 crore. In FY24, the company’s assets under management (AUM) totalled Rs 4,500 crore, up 66% YoY.
Founder and CEO Sanjay Sharma said Aye Finance may raise a pre-IPO fundraising round that would facilitate a secondary exit for existing shareholders as it prepares to go public. Sharma said the company will soon select a group of investment banks to kick-start the process. The company plans to enter the market in FY25-H1F FY26.
Since its inception in March 2014, Aye Finance has provided its first loan to an SME that manufactures women’s shoes. Over the years, 900,000 small businesses have received loans totalling Rs 10 crore from the organisation. The company has around 400,000 active clients, with typical loan amounts ranging from Rs 100,000 to Rs 200,000. Aye Finance currently offers property-secured loans of up to Rs 1 million. The company raised $37 million in a Series F funding round sponsored by British International Investment in December, after borrowing $30 million from Dutch bank FMO last month.
He noted that there has been a significant increase in demand for loans to small and medium enterprises following the economic slowdown due to the pandemic. Aye Finance aims to raise its assets under management to Rs 6,500 crore by FY25, a growth of over 50 per cent. Profit is expected to grow to nearly Rs 26 billion from Rs 16 billion, Sharma said. In the micro-lending space, the company faces competition from startups such as Indifi, Lendingkart and Axio.
Amidst a competitive environment, Aye Finance’s strategic growth plans and strong financial performance position the company for a successful IPO. As this important milestone approaches, the company remains committed to supporting small and medium-sized businesses across India.
