Aye Finance Gears Up for FY26 IPO with Strong Financials and Growth Strategy

Aye Finance, a microlender known for its contributions to small and microenterprises, plans to go public in the financial year 2026. The company plans to submit draft papers to the Securities and Exchange Board of India (SEBI) by the end of October or the beginning of November, resulting in a significant milestone in its journey.

Aye Finance has experienced exceptional development over the years. The company’s operational revenue increased by 44.5% to ₹623 crore in financial year 23, and profits moved in at ₹54 crore. In FY24, revenue increased 67% to ₹1,072 crore, while profits increased thrice to ₹161 crore. In FY24, the company’s assets under management (AUM) totaled ₹4,500 crore, up 66% from the previous year.

According to Founder and CEO Sanjay Sharma, Aye Finance may conduct a pre-IPO fundraising round. This round facilitates secondary exits for existing shareholders as it prepares for its public listing. Sharma stated that the company will soon select a group of investment bankers to begin the process. The company is expected to enter the market during the first half of fiscal years 25–26.

Since its launch in March 2014, Aye Finance has made its first loan to a small business that produces women’s footwear. Over the years, 900,000 micro-enterprises have received loans totaling ₹10,000 crore from the organization. The company has approximately 400,000 active customers, with typical loan sizes ranging from ₹1 lakh to ₹2 lakh. Aye Finance now offers property-based loans of up to ₹10 lakh. The company raised $37 million in a Series F funding round sponsored by British International Investment in December, after raising $30 million in debt from Dutch bank FMO last month.

He pointed out that after the pandemic-induced economic slowdown, there had been a substantial increase in demand for SME lending. Aye Finance aims to reach ₹6,500 crore in AUM by FY25, representing over 50% growth. Profits are expected to increase from ₹160 crore to nearly ₹260 crore, said Sharma. In the microlending space, the company faces competition from startups such as Indifi, Lendingkart, and Axio.

Even in the competitive landscape, Aye Finance’s strategic growth plans and strong financial performance position the company for a successful upcoming IPO. As it approaches this significant milestone, the company remains committed to empowering small and micro enterprises throughout India.

Jagat Joshi

Founder of IPOWatch, brings nearly 15 years of experience in IPO analysis and market research. He provides complete coverage of upcoming IPOs, subscription trends, grey market premiums (GMP), and post-listing performance, along with easy-to-understand reviews, insights, and analysis. In his working journey, he has worked with various platforms and received expertise in stock market analysis and primary markets.

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