Aye Finance, a lender concentrating on small- and medium-sized companies in India, is in search of to boost $171 million from its preliminary public providing, it disclosed in a submitting Tuesday.
The providing contains a $104 million contemporary share problem and a $67 million secondary sale by present buyers. Proceeds from the IPO can be used to broaden the startup’s mortgage portfolio and strengthen its capital base.
The lender, backed by Alphabet’s enterprise arm, CapitalG, is presently valued at about $400 million and operates 499 branches throughout 22 Indian states. It had $588 million in belongings underneath administration as of September.
Aye Finance extends enterprise loans — together with mortgage, hypothecation, and time period credit score — to small companies within the unorganized sector which can be sometimes excluded from conventional banking programs. Its common mortgage is about $1,800, and the corporate says it leverages proprietary expertise and analytics to evaluate its prospects’ creditworthiness.
The corporate’s income reached $122.5 million within the fiscal 12 months ended 2024, however its nonperforming 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 to this point.
The submitting of Aye Finance’s IPO prospectus caps a document 12 months for Indian IPOs. Monetary companies startup MobiKwik is going public soon, whereas Swiggy’s IPO final month was the largest among tech startups globally this year.
The submitting additionally comes at a crucial second for India’s monetary companies sector. The micro, small, and medium enterprise phase accounts for about 30% of India’s GDP however faces substantial credit score gaps, estimated at over $650 billion.
Axis Capital, IIFL Capital, JM Monetary, and Nuvama Wealth Administration are bookrunners for Aye Finance.
