Aye Finance expects 55% growth in AUM this year, eyes IPO in FY26

  • The company has focussed on cautious, selective funding and maintained a healthy 50% annualized growth rate

Samiksha Goel
Updated14 Feb 2024, 06:10 PM IST
Aye Finance has seen a 10-15% year-on-year increase in the average loan size, both mortgage-based loans and unsecured, for FY24. (File Photo: AFP)
Aye Finance has seen a 10-15% year-on-year increase in the average loan size, both mortgage-based loans and unsecured, for FY24. (File Photo: AFP)

New Delhi: Aye Finance, a fintech startup, expects its assets under management (AUM) to escalate to 4,200 crore by the end of this year, with an anticipated growth to 5,500 crore by the end of fiscal year 2024-25 (FY25). This growth trajectory will help set the stage for the company to consider an initial public offering (IPO), said Sanjay Sharma, the company’s founder and managing director.

“We will look at it (IPO) not in the next financial year, but the year after that. So we're talking about FY26, where we will definitely look at plans where we could come out with an IPO," he said.

The Gurgaon-based firm has seen a rapid expansion in its portfolio from 2,700 crore at the beginning of the year to approximately 3,900 crore, projecting to close FY24 with a 55% growth in AUM at 4,200 crore.

Sharma said that heeding the Reserve Bank of India's warnings about the economy overheating, Aye Finance has focussed on cautious, selective funding and maintained a healthy 50% annualized growth rate. 

The company clocked a net profit of 125 crore during the April-December period, and expects a full-year profit of close to 160 crore. Revenue for the same period stood at 751 crore.

In FY23, revenue from operations rose 44.5% on year to 623 crore, with net profit at 54 crore.

“We have been consistently delivering almost 19-20% return on equity (RoE) through the year and I think at the end of the year, we'll also demonstrate a delivery of around 19-20% RoE,” said Sharma.

Serving over 800,000 micro enterprises since its inception, the company has disbursed 275,000 new loans this year, maintaining an active customer base of around 400,000. 

With total funding of $135 million, the latest being $37.18 million led by British International Investment, Aye Finance continues to support small and micro enterprises across India. 

Sharma noted a 10-15% year-on-year increase in the average loan size, both mortgage-based loans and unsecured, for FY24, indicating a growing demand for larger loans for business expansion.

“Our typical loan size is about 100,000 to 200,000, which typically suffices as a working capital loan. Sometimes customers do look at 300,000-500,000 sort of loans or higher for setting up some new business or expanding their business,” he said adding that, this year loans which are in the 300,000-500,000 range have been higher than in FY23.

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First Published:14 Feb 2024, 06:10 PM IST
HomeCompaniesStart-upsAye Finance expects 55% growth in AUM this year, eyes IPO in FY26

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