Alphabet’s CapitalG-backed Aye Finance, a lender targeted on India’s micro, small, and medium enterprises, is looking for to lift $171 million from its preliminary public providing, it disclosed in a submitting Tuesday.
The providing includes a $104 million recent share challenge and a $67 million secondary sale by current traders, with proceeds aimed toward increasing the startup’s mortgage portfolio and strengthening its capital base.
The lender, valued at about $400 million, operates 499 branches throughout 22 Indian states, with $588 million in property underneath administration as of September 2024.
Aye Finance caters to India’s most underserved small companies, offering crucial monetary entry to micro-enterprises sometimes excluded from conventional banking techniques. The startup, based in 2014, extends enterprise loans — together with mortgage, hypothecation, and time period credit score — to unorganized sector companies with a mean mortgage measurement of $1,800, leveraging proprietary know-how and analytics to evaluate creditworthiness.
Aye Finance’s revenues reached $122.5 million in fiscal 2024, however non-performing property elevated from 2.74% to three.29%.
The startup, which additionally counts Elevation Capital and British International Investment amongst its backers, has raised greater than $160 million so far.
Its Stock Launch prospectus caps a report yr for Indian startup IPOs. Financial providers startup MobiKwik goes public quickly. Swiggy’s Stock Launch, final month, was the most important amongst tech startups globally this yr.
The Stock Launch additionally comes at a crucial second for India’s monetary providers sector. The MSME phase contributes roughly 30% of India’s GDP however faces a considerable credit score hole estimated at over $650 billion.
Axis Capital, IIFL Capital, JM Financial, and Nuvama Wealth Management are working the books of Aye Finance. Pricing particulars stay undisclosed.
