Aye Finance Limited is an NBFC–Middle Layer focused on providing small-ticket business loans to micro, small and medium enterprises (MSMEs), primarily micro-scale enterprises across India, offering working capital and business expansion financing against hypothecation of working assets or property security across manufacturing, trading, services and allied agriculture sectors, with an average loan ticket size of approximately ₹0.15 million aligned to the needs of credit-underserved entrepreneurs.

As of September 30, 2024, Aye Finance served 508,224 active unique customers across 18 states and three union territories, with assets under management (AUM) of ₹49,797.64 million (Source: CRISIL Report). The Company is among the leading NBFCs addressing the financing gap in India’s micro enterprise segment.

Phygital Operating Model

The Company operates through a “phygital” model, combining a high-touch branch network with technology-driven processes. Technology is embedded across sourcing, underwriting, disbursement and collections, supported by an in-house data science and AI team deploying statistical and machine learning models. This enables operational efficiency while maintaining credit discipline at scale.

Target Customer Profile

The Company primarily serves micro enterprises with annual turnovers between ₹2.0 million and ₹10.0 million, largely located in semi-urban areas. These customers typically operate from permanent business premises and have been in business for at least two years.

Underwriting Strength and Collections

Aye Finance follows a cash-flow-based underwriting approach, designed for customers with limited or no formal credit history. The Company has developed deep expertise across more than 70 business clusters, allowing it to assess business viability based on operating cash flows and margins rather than documentation alone.

This underwriting capability is supported by a strong collection framework, combining branch-level field teams, tele-collections and digital collection models.

Large Opportunity and Future Potential

India’s MSME landscape is dominated by micro enterprises, which account for over 97% of MSMEs, yet receive only a small share of formal credit (Source: CRISIL Report). High operating costs, data limitations and underwriting complexity create significant barriers for lenders, resulting in a large underserved market.

With its specialized underwriting, diversified presence and scalable operating model, Aye Finance is well positioned to capitalize on this substantial opportunity