Aye Finance Secures Rs 250 Cr in Series G Round Led by ABC Impact
Mumbai, India: Aye Finance, a leading microlending platform, has announced that it has raised Rs 250 crore ($30 million) in a Series G funding round led by Singapore-based impact investor ABC Impact. This investment is the first for ABC Impact’s Fund II and marks a significant milestone for the firm, boosting its assets under management (AUM) to over $850 million.
Key Highlights:
- Aye Finance has raised a total of Rs 1,250 crore ($150 million) in equity through various funding rounds, showcasing the company’s strong growth trajectory.
- The platform has expanded its reach to over 398 locations in 22 states across India, providing financial services to micro and small enterprises.
- Aye Finance offers three loan products with values ranging from Rs 50,000 to Rs 1,000,000, catering to various industries such as manufacturing, trading, and services.
- The company has disbursed over Rs 7,600 crore ($915 million) in loans to over 5,76,000 businesses, with a 60% repeat rate.
Financial Performance: Aye Finance reported a revenue growth of 44.5% to Rs 623 crore during FY23, with a profit of Rs 54 crore. The company claims to have achieved a 3x growth in profit to Rs 161 crore and a 67% increase in revenue to Rs 1,072 crore in FY24. Its AUM stood at Rs 4,500 crore at the end of FY24, with a gross NPA of 1.21%.
Competitive Landscape: Aye Finance operates in a competitive landscape, competing with several non-banking finance companies (NBFCs) such as Indifi, Axio (formerly Capital Float), Lendingkart, and Flexiloans.
This investment by ABC Impact is a significant boost to Aye Finance’s growth ambitions, enabling the company to expand its reach and offerings to more micro and small enterprises across India.
