Aye Finance's Landmark Loan Securitisation Deal with Goldman Sachs

Aye Finance, a fintech NBFC, has completed a Rs 212 crore business loan securitisation transaction with Goldman Sachs (India) Finance Pvt Ltd. The deal will enable Aye Finance to expand its micro-enterprise lending operations. The company has already provided over Rs 10,000 crores in credit to grassroots businesses.

Aye Finance, a fintech non-banking financial company (NBFC), announced on Wednesday the completion of a Rs 212 crore (about USD 25.3 million) business loan securitisation transaction with Goldman Sachs (India) Finance Pvt Ltd.

This transaction is set to facilitate the continued expansion of Aye Finance's lending services to micro enterprises across India, according to a statement from the NBFC.

Aye Finance CFO Krishan Gopal emphasized that the transaction highlights the company's robust business model dedicated to meeting the credit needs of micro enterprises. Gopal stated, ''Aye has emerged as a category leader in transforming micro enterprise lending in India, having extended credit lines worth over Rs 10,000 crores to 9 lakh grassroots businesses. This deal will further accelerate our growth trajectory.''

Hitesh G, an executive director at FICC Credit Structuring at Goldman Sachs in India, remarked that Goldman Sachs is committed to offering innovative debt financing solutions in the country. In June 2024, Aye Finance reported a threefold increase in profit to Rs 161 crore and a 67 percent rise in revenue to Rs 1,072 crore for the last financial year compared to FY23.

Notably, in December 2023, Aye Finance successfully raised Rs 330 crore in a Series F equity funding round, which has bolstered its capacity to reach out to micro businesses and provide essential financial support to this underserved segment.

(With inputs from agencies.)