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

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₹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.