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 subject and a $67 million secondary sale by present traders, with proceeds geared 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 belongings beneath administration as of September 2024.
Aye Finance caters to India’s most underserved small companies, offering vital monetary entry to micro-enterprises usually excluded from conventional banking programs. 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 dimension 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 belongings elevated from 2.74% to three.29%.
The startup, which additionally counts Elevation Capital and British Worldwide Funding amongst its backers, has raised greater than $160 million thus far.
Its IPO prospectus caps a report yr for Indian startup IPOs. Monetary companies startup MobiKwik is going public quickly. Swiggy’s IPO, final month, was the biggest amongst tech startups globally this yr.
The IPO additionally comes at a vital second for India’s monetary companies sector. The MSME section contributes roughly 30% of India’s GDP however faces a considerable credit score hole estimated at over $650 billion.
Axis Capital, IIFL Capital, JM Monetary, and Nuvama Wealth Administration are operating the books of Aye Finance. Pricing particulars stay undisclosed.
