Aye Finance, a fintech non-banking financial company (NBFC) that provides small business loans to micro-enterprises in India, has closed a ₹212 crore business loan securitisation transaction with Goldman Sachs (India) Finance Private Limited, the NBFC arm of Goldman Sachs in India.
The transaction will allow the continued expansion of Aye Finance’s lending operations to Micro Enterprises across India.
The securitization deal is backed by a portfolio of Aye Finance’s business loans to Micro Enterprises structured via pass-through certificates and will further strengthen Aye Finance’s asset and liability management position.
Krishan Gopal, CFO, Aye Finance, said, “This transaction underscores our robust business model catering to the credit needs of Micro Enterprises, and our innovative approach to lending to drive significant socioeconomic progress. Aye has emerged as a category leader transforming micro-enterprise lending in India, having provided credit lines of over ₹10,000 crores to 9 lakh grassroots businesses, and this deal will further accelerate our growth trajectory.”
Hitesh G, an Executive Director in FICC Credit Structuring at Goldman Sachs in India, said, “This most recent business loan securitization transaction reflects our commitment to support Indian corporates. Goldman Sachs is focused on providing innovative debt financings instruments in India.”
Aye Finance, a non-bank financial company, is planning to launch its initial public offering (IPO) within the next nine to 12 months. The company, backed by Alphabet, focuses on small and medium enterprises (SMEs).
Aye has an impressive suite of investors including CapitalG, Elevation Capital, British International Investment, Lightrock, Alpha Wave, A91 Partners and MAJ Invest.
Aye Finance has enlisted four arrangers for its upcoming IPO. The company aims to raise between ₹1,700 and 2,000 crore in capital through the offering.
Axis Capital, JM Financial, Nuvama, and IIFL Securities have been appointed as merchant bankers to manage the IPO.
In June 2024, Aye Finance reported its profit grew in the last financial year three times to ₹161 Crores and revenue was up 67% to ₹1072 Crores compared to the financial year 2022-23.
In December 2023, Aye Finance raised ₹330 Crores in a Series F equity round and has put in place a robust mechanism to reach out to micro businesses and provide financial support to this underserved segment.
