Aye Finance, a prominent microlending platform, has successfully raised Rs 250 crore (approximately $30 million) in its Series G funding round. This latest investment was led by Singapore’s ABC Impact, with additional participation from British International Investment (BII), the UK’s development finance institution and impact investor. Notably, BII also led Aye’s previous Series F round, which secured Rs 310 crore ($37 million) in December 2023.
This round marks the inaugural investment from ABC Impact’s Fund II and elevates Aye Finance’s assets under management (AUM) to over $850 million. The deal is pending the completion of standard conditions precedent. Cumulatively, Aye Finance has raised Rs 1,250 crore (around $150 million) in equity.
Operating across 398 locations in 22 states, Aye Finance specializes in providing financial services to micro and small enterprises, predominantly in the manufacturing, trading, and service sectors. The company offers three primary loan products, ranging from Rs 50,000 to Rs 1,000,000: quasi-mortgage loans, hypothetical loans, and add-on loans. To date, Aye Finance has disbursed over Rs 7,600 crore ($915 million) in loans to more than 576,000 businesses, boasting an impressive 60% repeat loan rate.
Financially, Aye Finance has shown significant growth, with a 44.5% increase in revenue from operations, reaching Rs 623 crore during FY23, alongside a profit of Rs 54 crore. In FY24, the company reported a remarkable threefold increase in profit to Rs 161 crore, with revenue rising 67% to Rs 1,072 crore.
By the end of FY24, Aye Finance had achieved an AUM of Rs 4,500 crore, with a gross non-performing asset (NPA) ratio of just 1.21%. The company competes with various non-banking financial companies (NBFCs) such as Indifi, Axio (formerly known as Capital Float), Lendingkart, and Flexiloans, positioning itself as a leader in the microfinance sector.
