Aye Finance’s Net Profit Surges 2.8x to Rs 161 Crore in FY24

Aye Finance, a prominent non-banking finance company specializing in lending to micro-enterprises, announced a remarkable increase in its profit after tax (PAT), which nearly tripled to Rs 161 crore in the fiscal year 2023-24, up from Rs 57 crore in the previous fiscal year. The company’s revenue also saw a significant rise, growing by 67% to Rs 1,072 crore from Rs 643.34 crore, while its assets under management (AUM) expanded to Rs 4,400 crore from Rs 2,700 crore.

Aye Finance successfully maintained its net non-performing assets (NPA) under 1%, with the majority of its portfolio secured by collateral. This growth underscores the company’s robust market presence and strategic focus on the micro, small, and medium enterprises (MSE) segment.

“Our growth is built on a stable market of micro MSE segment. We remain committed to empowering MSEs, fostering financial inclusion, and contributing to the overall economic development of the country,” said Sanjay Sharma, Managing Director of Aye Finance, in a statement.

Founded in 2014 by ex-Ujjivan Finance operators Sanjay Sharma and Vikram Jetley, Aye Finance has made significant strides in supporting micro-enterprises across India. The company has disbursed over Rs 12,000 crore in small-ticket loans to more than nine lakh businesses, providing unsecured business loans to underserved micro-enterprises. Leveraging advanced data analytics and technology, Aye Finance has streamlined its credit assessment, underwriting, and loan administration processes to enhance efficiency and accessibility.

In the first quarter of FY24, Aye Finance achieved profitability with a PAT of Rs 38.67 crore. The company’s growth and financial stability have been bolstered by the support of various impact investors, including CapitalG, Elevation Capital, Light Rock, Alpha Wave, A91 Partners, and MAJ Invest.

In March 2024, Aye Finance secured €15 million ($16.2 million) in debt funding from German impact investor Invest in Vision’s private funds. Additionally, in December 2023, the company raised Rs 310 crore in a Series F funding round led by the UK’s development finance institution British International Investment. This followed a $10 million external commercial borrowing from Swiss-based responsAbility Investments AG in December 2022.