Alphabet-backed Indian lender information for IPO

Aye Finance, a lender centered on Indian micro, small and medium enterprises, backed by CapitalG, is seeking to elevate $171 million in its IPO, it mentioned. disclosed in a depot Tuesday.

The providing features a $104 million new inventory providing and a $67 million secondary sale by present buyers, with proceeds meant to develop the startup’s mortgage portfolio and strengthen its capital base.

The lender, valued at roughly $400 million, operates 499 branches throughout 22 Indian states, with $588 million in belongings beneath administration as of September 2024.

Aye Finance targets Indian prospects the most underserved small businessesoffering important monetary entry to micro-enterprises usually excluded from conventional banking programs. The startup, based in 2014, offers enterprise loans – together with mortgages, mortgages and time period loans – to companies within the unorganized sector with a mean mortgage dimension of $1,800, leveraging a proprietary know-how and analytics to evaluate creditworthiness.

Aye Finance’s income reached $122.5 million in FY2024, however non-performing belongings elevated from 2.74% to three.29%.

The startup, which additionally counts Elevation Capital and British Worldwide Funding amongst its backers, has raised greater than $160 million so far.

Its IPO prospectus caps a report 12 months for Indian startup IPOs. Monetary providers startup MobiKwik is will soon be made public. Swiggy’s IPO final month was the biggest tech startup in the world this year.

The IPO additionally comes at a crucial time for the Indian monetary providers sector. The MSME section contributes round 30% of India’s GDP, however faces a major credit score hole estimated at over $650 billion.

Axis Capital, IIFL Capital, JM Monetary and Nuvama Wealth Administration handle the books of Aye Finance. Pricing particulars stay confidential.