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Funding · Financial Services

Aye Finance to raise up to $15 Mn through listed non-convertible debentures

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Date
Company
Aye Finance
What it does
non-banking financial company (NBFC) offering business loans to MSMEs
Kind
Funding
Amount
$15 Mn
Stage
debt
Sector
Financial Services

What they do

Aye Finance, a non-banking financial company (NBFC) offering business loans to micro, small, and medium enterprises (MSMEs), is raising up to $15 Mn through…

What happened

The NCDs will be issued on a private placement basis with a face value of ₹1 Lakh per debenture, and will be listed on the BSE’s Wholesale Debt Market Segment

Why it matters

The maturity tenure is five years, with semi-annual interest payments; the company’s net profit for Q4 FY26 surged 111% YoY to ₹85.9 Cr, and its AUM at the…

The details

  • Aye Finance, a non-banking financial company (NBFC), has approved the issuance of up to $15 Mn in non-convertible debentures (NCDs) on a private placement basis.
  • The NCDs will be issued with a face value of ₹1 Lakh per debenture and will be listed on the BSE’s Wholesale Debt Market Segment.
  • The maturity tenure of the NCDs is five years, with semi-annual interest payments and principal redemption in five equal instalments starting 1.5 years after allotment.
  • The company will provide investors with security in the form of pledged loan assets and receivables, which will be placed under a first-ranking exclusive charge in favour of the debenture trustee.
  • Aye Finance has committed to maintaining the value of these pledged assets at a minimum of 1.1X the outstanding debenture amount at all times until the debentures are fully redeemed.
  • The fund raise comes within months of the NBFC completing its initial public offering (IPO) in February 2026, which raised ₹710 Cr through a fresh issue of shares and ₹300 Cr through an offer-for-sale component.

The bigger picture

  • Aye Finance is raising capital through NCDs to meet its capital requirements, a common practice for NBFCs.
  • The company’s net profit for Q4 FY26 surged 111% YoY to ₹85.9 Cr, and its operating revenue increased 29% YoY to ₹528.4 Cr.
  • For the full fiscal year FY26, the NBFC’s PAT increased 13% to ₹193.6 Cr from ₹171.3 Cr, while its operating revenue for the fiscal jumped 24% YoY to ₹1,814.7 Cr.

About the business

  • Aye Finance provides business loans to micro, small, and medium enterprises (MSMEs) across India.
  • The company offers secured hypothecation loans, unsecured hypothecation loans, mortgage-based loans, and Shakti Loan, with average ticket sizes of ₹1.5 Lakh and ₹5 Lakh respectively.
  • Aye Finance claims to have an asset under management (AUM) of ₹7,044 Cr at the end of FY26.
  • The company has 571 active branches, 10,891 team members, and operates in 21 states across India.
  • Aye Finance has a customer base of 6,70,372 and a retention rate of 47.26%.

What happens next

  • Aye Finance plans to double its AUM by FY29 through a secured lending push and branch deepening.

The deal

Type
fund

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