About Company

• Incorporated in August 1993, Aye Finance (“AFL”) is a non-banking financial company - middle layer (“NBFC-ML”) focused on providing loans to micro, small and medium enterprises (“MSMEs”) across India. They offer a range of business loans for working capital and business expansion needs, secured by hypothecation of working assets or by security of property, to customers across the manufacturing, trading, service, and allied agriculture sectors.

• As of September 30, 2025, it has 586,825 active unique customers across 18 states and 3 union territories and with assets under management (“AUM”) of ?6,027.62 crore.

• They offer small-ticket business loans with an average ticket size (“ATS”) at disbursement of ?1.8 Lakh to micro enterprises. Their expertise in underwriting the business cash flows of a variety of business clusters has enabled them to maintain stable credit costs and profitably scale up their operations. They are the most geographically diversified lender among the Peer MSME-focused NBFCs.

• The company’s AUM grew at a CAGR of 42.60% between Fiscal 2023 and Fiscal 2025, reaching ?6,027.62 crore as of September 30, 2025.

• As of September 30, 2025, the company manages its business across 4 zones in India, namely North, South, East and West Zones, and their AUM is well distributed across these zones, with 34.80% in the North, 27.79% in the East, 22.73% in the West and 14.69% in the South.

• The industries they serve include manufacturing, trading, service and allied agriculture. As of September 30, 2025, over 90.86% of their customers owned their residence or place of business or both, and 94.04% employed five or less employees (excluding DA purchase pool cases). Further, as of September 30, 2025, 37.17% of their newly sourced customers were new to credit.

• The company operates SwitchPe, a supply chain finance platform tailored for micro and small enterprises. The platform features an intuitive user interface that allows shop owners to explore products and manage payments efficiently, with the added benefit of cashback on full repayments.  As of September 30, 2025, they had 2,304 users on the SwitchPe platform.X

Strengths

Competitive Strength 

• Leading Lender of Small-Ticket Loans to Micro Scale MSMEs with Comprehensive Product Offerings and Focus on Serving Large and Unaddressed TAM
• Strong Sourcing Capabilities Supported by a Diversified Pan-India Presence and High Customer Retention
• Effective Underwriting Methodology
• Robust Multi-Tiered Collection Capabilities
• Building Resilience through Technological Prowess
• Access to Diversified Lender Base and Cost-Effective Financing
• Experienced and Professional Management Team backed by Marquee Investors with a Committed Employee Base

Business Strategies 

• Increasing AUM per branch by increased penetration in their target segment
• Growing their Mortgage Loan Portfolio
• Leveraging Technology and Data Sciences for Improving Productivity and Scalability
• Improving Operating Leverage
• Optimizing Borrowing Costs and Diversifying Lender Base

Company Promoters

Company Financials

Objects of the Issue

Objects Amount (? Cr)
• Augmenting their capital base to meet the company’s future capital requirements arising from the growth of their business and assets [ • ]
• General Corporate Purposes [ • ]