Aye Finance, a non-banking finance company, has closed a ₹212-crore business loan securitisation transaction with Goldman Sachs (India) Finance Pvt Ltd, the NBFC arm of Goldman Sachs in India. 

The transaction will allow the continued expansion of Aye Finance’s lending operations to micro enterprises across India. Aye Finance is backed by Capital G (Google parent Alphabet’s investment arm).

The securitisation deal is backed by a portfolio of Aye Finance’s business loans to micro enterprises structured via pass-through certificates. This transaction will further strengthen the asset and liability management position of Aye Finance. 

“This transaction underscores our robust business model catering to the credit needs of micro enterprises, and our innovative approach to lending to drive significant socioeconomic progress”, Krishan Gopal, CFO, Aye Finance, said.

Aye Finance has transformed micro enterprise lending in India, having provided credit lines of over ₹10,000 crore to 9 lakh grassroots businesses, and this deal will further accelerate our growth trajectory, he said.

Hitesh G, an Executive Director in FICC Credit Structuring at Goldman Sachs in India,  said, “This most recent business loan securitisation transaction reflects our commitment to support Indian corporates. Goldman Sachs is focused on providing innovative debt financing instruments in India.” 

For the year 2023-24, Aye Finance reported a net profit of ₹161 crore (₹57 crore in 2022-23). The company’s revenue grew 67 per cent in 2023-24 to ₹1,072 crore (₹643 crore).

In December 2023, Aye Finance raised ₹330 crore in a Series F equity round and has put in place a robust mechanism to reach out to micro businesses and provide financial support to this underserved segment. 

The impressive suite of investors who support Aye Finance include CapitalG, Elevation Capital, British International Investment, Lightrock, Alpha Wave, A91 Partners and MAJ Invest.

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