Micro enterprise lender Aye Finance on Thursday disclosed its financial year 2023-24 results with a profit after tax (PAT) of Rs 161 crore on a revenue of Rs 1072 crore. In comparison, FY23 PAT stood at Rs 57 crore while revenue was at Rs 643.34.
The non-banking financial company (NBFC), offering working capital and fixed capital to the underserved segment of micro enterprises across India, said its Assets under Management (AUM) also saw a remarkable increase to Rs 4,400 crore from Rs 2,700 crore in FY23.
In terms of asset quality, Aye Finance claimed net NPAs (non-performing assets) under 1 per cent of the loan book. The majority of the company portfolio is secured by hypothecation of assets and mortgage.
Speaking on the results, Sanjay Sharma, Managing Director, Aye Finance, said, “Our growth is built on a stable market of micro MSE segment. We remain committed to empowering MSEs, fostering financial inclusion, and contributing to the overall economic development of the country. As we look ahead, we are well-positioned to capitalize on the vast growth opportunities and further strengthen our position as a leading provider of innovative financial solutions for this vital segment.”
Aye Finance said it has disbursed over Rs 12,000 crore to more than 9 lakh businesses since its inception in 2014.
In March this year, the company had raised approximately Rs 137 crore in debt funding for loans to micro enterprises. In December last year, Aye Finance had announced its Series F equity round of Rs 310 crore led by British International Investment. The company claimed an active client base of more than 4.5 lakh micro enterprises.
Recently, the Reserve Bank of India (RBI) had cautioned NBFCs for over-reliance on rule-based credit engines relatively higher than banks for lending. The central bank had noted that rule-based credit engines are only as effective as the data and criteria upon which they are built and that overreliance on historical data or algorithms may lead to oversights or inaccuracies in credit assessment, particularly in dynamic or evolving market conditions.
