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Alphabet-backed Aye Finance, a lender focused on India’s micro, small, and medium enterprises, has filed for an initial public offering (IPO) to raise $171 million. The company aims to utilize the funds to expand its loan portfolio and strengthen its capital base.
According to the filing, Aye Finance is seeking to issue fresh shares worth $104 million and offload existing shares worth $67 million by current investors. Founded in 2014, the startup has raised over $160 million so far and operates 499 branches across 22 Indian states.
Aye Finance’s primary objective is to provide critical financial access to micro-enterprises that are often excluded from traditional banking systems. The company offers business loans, including mortgage, hypothecation, and term credit, with an average loan size of $1,800. Aye Finance relies on proprietary technology and analytics to assess the creditworthiness of its borrowers.
In fiscal year 2024, Aye Finance’s revenues reached $122.5 million, although non-performing assets rose from 2.74% to 3.29%.
Source: techcrunch.com
