Aye Finance's net profit grows 2.8X to Rs 161 Cr in FY24

Aye Finance, a non-banking finance company that lends to micro-enterprises, saw its profit after tax (PAT) nearly triple to Rs 161 crore in FY2023-24, from Rs 57 crore in the previous fiscal year.

Revenue grew 67% to Rs 1,072 crore from Rs 643.34 crore, while assets under management (AUM) rose to Rs 4,400 crore from Rs 2,700 crore. Aye Finance maintained its net NPA under 1%, with most of its portfolio secured by collateral.

"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.

The Gurugram-headquartered company had achieved profitability in Q1 FY24 with a PAT of Rs 38.67 crore.

Founded in 2014 by ex-Ujjivan Finance operators Sanjay Sharma and Vikram Jetley, Aye Finance has disbursed over Rs 12,000 crore in small-ticket loans to more than nine lakh businesses.

Aye Finance provides unsecured small-ticket business loans to underserved micro enterprises in India, leveraging advanced data analytics and technology to streamline credit assessment, underwriting, and loan administration processes.

The lender is backed by CapitalG, Elevation Capital, Light Rock, Alpha Wave, A91 Partners, and MAJ Invest and various other impact investors.

In March this year, the company raised €15 million ($16.2 million) in debt funding from German impact investor Invest in Vision's private funds.

In December 2023, it raised Rs 310 crore in a Series F round led by the UK's development finance institution British International Investment. In December 2022, the company had raised $10 million of external commercial borrowings from Swiss-based responsAbility Investments AG.