Alphabet-backed Aye Finance appoints bankers for its upcoming ₹2,000-crore IPO

Alphabet-backed Aye Finance, a non-banking financial company focusing on SMEs, has selected bankers for its upcoming IPO, aiming to raise Rs 1,700–2,000 crore. The company plans to list within the next 9–12 months and has appointed Axis Capital, JM Financial, Nuvama, and IIFL Securities to manage the public offering.

Sources indicate that a formal IPO filing is expected within the next 1–2 months. In December last year, Aye Finance secured Rs 310 crore in a Series-F funding round from British International Investment (BII), with participation from existing investors like Waterfield Fund of Funds and A91 Partners. This round reportedly boosted the company's valuation by 30% from $250 million, which it reached when Capital G, Google's venture fund, invested Rs 210 crore.

As of September 2023, Aye Finance has raised around Rs 85,200 crore in equity capital. Major shareholders include Elevation Capital (19.86%), LGT Capital (17.38%), Capital G (16.43%), Falcon Edge (now Alpha Wave at 13.32%), A91 Partners (10.32%), and MAJ Invest (7.11%). Promoter Sanjay Sharma holds a 3.16% stake, with the remaining shares held by the employee welfare trust (1.81%) and others.

The company concluded FY24 with a loan book of Rs 4,473 crore and a net profit of Rs 161 crore, a significant increase from Rs 57 crore in FY23. Aye Finance's portfolio is primarily focused on unsecured loans, providing working capital finance to small and medium enterprises.

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