Fintech Startup Aye Finance Raises Rs 110 Cr Debt Funding

IPO-bound lending tech startup Aye Finance has raised INR 110 Cr (around $12.8 Mn) in debt from investors like Northern Arc, ASK Financial Holdings, MAS Financial Services and CredAvenue.

In a December 31 exchange filing, the NBFC announced its board approved issuing 1,000 non-convertible debentures (NCDs) worth INR 1 Lakh each in two tranches.

In a December 20 filing with the BSE, Aye Finance stated it would use the funds to grow its NBFC operations.

This debt raise follows the company’s filing of a draft red herring prospectus (DRHP) with SEBI for an INR 1,450 Cr IPO. The IPO will include a fresh equity issue worth INR 885 Cr and an offer-for-sale (OFS) of INR 565 Cr by existing shareholders.

Read also - Suniel Shetty-Backed Klassroom Raises Pre-Seed A Funding

Aye Finance plans to use the IPO proceeds to support its future capital needs for business and asset growth.

Financially, the company reported a 37% rise in net profit to INR 107.8 Cr in the first half of FY25, with operating revenue increasing to INR 692.24 Cr from INR 472 Cr in the same period last year.

In FY24, Aye Finance's net profit surged 291.7% YoY to INR 171.6 Cr, up from INR 43.8 Cr in FY23. Its operating revenue also grew 66.86% to INR 1,040.21 Cr, compared to INR 623.42 Cr in the previous year.

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In its last funding round, Aye Finance raised INR 250 Cr in Series G funding, led by Singapore-based impact investor ABC Impact.

About Aye Finance

Founded in 2014 by Sanjay Sharma and Vikram Jetley, Gurugaram based Aye Finance provides loans to small businesses across India, using AI-powered credit assessment algorithms to evaluate risk without traditional business documents.

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