Aye Finance ltd

About Aye Finance

Founded in 1993, Aye Finance is a Gurugram-based NBFC that focuses on providing business loans to micro-enterprises. It uses a "phygital" model—combining a large physical branch network with a proprietary technology-driven underwriting system.

Strengths

• Deep Penetration: Strong presence in semi-urban and rural markets across 18+ states.

• Niche Focus: Specifically targets the "missing middle" of micro-enterprises that banks often overlook.

• Strong Backing: Backed by marquee investors like CapitalG (Alphabet) and Elevation Capital.

• Scalable Model: Uses AI/ML-based credit scoring to assess informal income streams.

📈 Financial Health (FY25 & H1 FY26)

Aye Finance has shown robust revenue growth, though asset quality remains a point of observation for investors.

• Revenue: Jumped significantly from ₹1,071 Cr (FY24) to ₹1,505 Cr (FY25).

• Profit After Tax (PAT): Reported at ₹175.25 Cr in FY25.

• Asset Quality: Gross Non-Performing Assets (GNPA) stood at 4.21% in March 2025, showing some upward pressure compared to previous years.

• Grey Market Premium (GMP): Currently hovering at a modest 0% to 4%, indicating a cautious yet steady outlook from the street.

⚠️ Key Risks to Consider

Note: Every investment carries risks. For Aye Finance, the primary concerns involve:

1. Asset Quality: Higher exposure to unsecured micro-loans makes the portfolio sensitive to economic downturns.

2. Negative Cash Flow: The company reported negative operating cash flows in recent periods due to rapid lending expansion.

3. High Attrition: Employee turnover in the field-led model remains a challenge for operational stability.