Aye Finance

Name

Aye Finance

Legal name

Aye Finance Limited

Website

https://ayefin.com

Company type

Public

Founded year

2014

Operating status

Ipo

Headcount range

1,001–5,000 employees

Ownership category

akta.pro rank

Product category

MSME Lending

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD)

Keywords

• MSME lending
• Micro enterprise loans
• Small business finance
• Working capital loans
• NBFC services

Headquarters

HQ city

Gurugram

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Supply Chain

Revenue model

1. Interest Income from MSME Lending: Aye Finance generates revenue primarily through interest income on loans provided to micro, small, and medium enterprises. The company offers small-ticket working capital loans averaging Rs 1.5 lakh across manufacturing, trading, services, and allied agriculture sectors.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Aye Finance is a non-banking financial company (NBFC) that provides small-ticket working capital loans, averaging Rs 1.5 lakh, to underserved micro and small enterprises (MSMEs) across manufacturing, trading, services, and allied agriculture sectors in India. The company operates through a proprietary branch-based distribution model with 568+ branches across 18 states and 3 union territories, and uses Generative AI-powered image-based underwriting to assess credit-invisible micro-entrepreneurs. It also offers a Buy Now, Pay Later (BNPL) product called SwitchPe for Kirana stores and is expanding its secured lending portfolio.

Product overview

Aye Finance operates as an NBFC (Non-Banking Financial Company) providing MSME lending services primarily to micro and small enterprises. The core product portfolio consists of small-ticket business loans averaging ₹1.5 lakh targeting approximately 7 crore unorganized micro-enterprises in India. The company offers unsecured working capital loans and is expanding its secured lending (mortgage-backed) products. A sub-brand, SwitchPe, provides BNPL services specifically for Kirana stores. All lending operations span manufacturing, trading, services, and allied agriculture sectors across 18 states and 3 union territories.

Differentiator

Problem solved

Functional benefit

Brands

• SwitchPe: BNPL (Buy Now, Pay Later) product for Kirana stores in India, enhanced with a £200,000 grant from TRANSFORM initiative.

Products and services

• MSME Business Loans Small-ticket working capital and business loans averaging Rs 1.5 lakh for micro and small enterprises. Serves borrowers across manufacturing, trading, services, and allied agriculture sectors with focus on underserved MSMEs lacking formal credit access.
• SwitchPe BNPL Product A Buy Now, Pay Later (BNPL) digital payment and credit product targeting Kirana (small grocery) store owners in India. Provides working capital support and short-term credit facilities to underserved micro-enterprises in the retail sector.
• Secured Lending Products Mortgage and secured lending products that the company is scaling as part of its portfolio diversification strategy, with secured lending book targeted to grow from 22% to 30% of total portfolio.

Quantifiable outcome

• Revenue CAGR of 50.3% between FY2022-2025
• +5 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability6 records

Feature1 record

Partnerships

One partnership is on record.

• India Ratings and Research (Ind-Ra)majorOthers · 25 June 2026Credit rating agency that upgraded Aye Finance's credit rating from 'IND A' to 'IND A+' with Stable Outlook, and upgraded commercial paper rating to 'IND A1+' from 'IND A1', reflecting strengthened loan book and improved capitalization.

Scale indicators18 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Lendingkart Finance: Leading digital MSME lending fintech in India providing working capital and business loans to small businesses. Closely comparable to Aye Finance in target customer segment (underserved MSMEs) and product offering (small-ticket business loans), though primarily digital vs. Aye's branch-led model.
• CreditAccess Grameen: Leading Indian microfinance institution providing income-generating loans to poor women in rural areas. Comparable to Aye Finance in serving unorganized micro-enterprises and small businesses at the bottom of the pyramid, though primarily group-based lending model.
• Kinara Capital: India-based NBFC providing collateral-free business loans to micro and small enterprises, particularly in manufacturing and trading sectors. Highly comparable to Aye Finance in serving thin-file borrowers with limited formal credit history, with similar average ticket sizes and geographic focus on tier-2+ markets.
• Muthoot Microfin: Indian microfinance NBFC providing loans to micro-enterprises and women borrowers through joint liability groups. Comparable to Aye Finance in microenterprise lending segment and geographic focus on underserved Indian markets, with similar customer profiles.
• MAS Financial Services: Listed Indian NBFC providing MSME loans, micro-enterprise loans, and two-wheeler financing with focus on underserved segments. Comparable to Aye Finance in serving micro-enterprises through branch network and similar geographic footprint in India.
• Spandana Sphoorty Financial: Indian microfinance company providing small-ticket loans to women entrepreneurs and micro-enterprises. Comparable to Aye Finance in serving informal sector borrowers at similar ticket sizes, with overlapping geographic presence in Indian states.
• Ugro Capital: Listed Indian NBFC specializing in MSME lending with focus on data-driven underwriting for small businesses. Direct peer to Aye Finance with comparable target segment, loan products, and growth trajectory in the underserved MSME lending space.
• Fusion Microfinance: Listed Indian microfinance institution providing credit to micro-entrepreneurs and women self-help groups. Comparable to Aye Finance in serving the unorganized micro-enterprise segment, though with group lending model vs. Aye's individual lending approach.

Broad incumbents

• Bajaj Finserv: Large diversified Indian financial services company offering MSME/business loans among many other products. Overlaps with Aye Finance in small business lending segment but operates across consumer durables, insurance, and asset management, making it a much broader incumbent.
• Cholamandalam Investment and Finance: Major Indian NBFC with diversified portfolio including vehicle finance, home loans, and SME/MSME lending. Comparable to Aye Finance in MSME lending but operates at significantly larger scale with broader product suite and established branch network.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/ayefinance
• Facebookfacebook.com/370519746438158
• LinkedInlinkedin.com/company/aye-finance-pvt-ltd

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds35 records

Investors31 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Aye Finance