New Delhi: Aye Finance, a fintech startup, expects to increase its assets under management (AUM). ₹4,200 crore by the end of this year, with an expected growth ₹5,500 crore by the end of financial 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, founder and managing director of the company.
“We will not consider going public in the next financial year, but the year after that. So we are talking about FY26 where we will definitely be looking at plans where we could do an IPO,” he said.
The Gurgaon-based company has since seen a rapid expansion of its portfolio ₹2,700 crore at the beginning of the year to approx ₹3,900 crore, expected to close FY24 with 55% growth in assets under management ₹4,200 crore.
Sharma said Aye Finance has heeded the Reserve Bank of India's warnings about overheating of the economy and focused on cautious, selective financing and maintained a healthy annual growth rate of 50%.
The company achieved a net profit of ₹125 crore in the April-December period and expects a profit of close to the full year ₹160 crore. Sales in the same period were ₹751 crore.
In FY23, revenue from operations increased 44.5% year-on-year ₹623 crore, with a net profit of ₹54 crore.
“We have consistently delivered a return on equity (RoE) of almost 19-20% during the year and I think we will post a return on equity of around 19-20% at the end of the year as well,” said Sharma.
The company has served over 800,000 micro-enterprises since its inception, disbursed 275,000 new loans this year and maintained an active customer base of around 400,000.
With total funding of $135 million, most recently $37.18 million led by British International Investment, Aye Finance continues to support small and micro businesses across India.
Sharma noted a 10-15% year-on-year increase in average loan size in FY24 for both mortgage loans and unsecured loans, indicating growing demand for larger loans for business expansion.
“Our typical loan size is approx ₹100,000 tons ₹200,000, which is usually sufficient as a working capital loan. Sometimes customers look ₹300,000 to 500,000 loans or more for starting a new business or expanding their business,” he said, adding that loans are in circulation this year ₹The range of 300,000 to 500,000 was higher than FY23.
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Published: Feb 14, 2024 6:08 PM IST
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