Aye Finance Ltd IPO

Leading small-ticket lender in MSME ecosystem with focus on serving large and untapped market of microenterprises.

Comprehensive portfolio of lending products for micro enterprises resulting in high customer retention.

Strong underwriting method.

Robust multi-tiered collections capabilities.

Building resilience through technological prowess.

Access to diversified lender base and cost-effective financing.

Experienced and professional management team backed by marquee investors with a committed employeebase.

We are subject to the risk of non-payment or default by our borrowers which may adversely affect ourbusiness, results of operations and financial condition. Our Gross NPA ratio has increased from 2.49%as of March 31, 2023 to 4.21% as of March 31, 2025, and was 4.85% as of September 30, 2025.

Our operations depend on the accuracy and completeness of information provided by our customers andcertain third party service providers and our reliance on any erroneous or misleading information mayaffect our judgement of their creditworthiness, as well as the value of and title to the collateral.

If we are unable to control the level of Gross Non-Performing Assets / Stage 3 Assets / Net NPAs in ourportfolio effectively, or if we are unable to maintain adequate provisioning coverage, or if there is anychange in regulatorily mandated provisioning requirements, our financial condition and results ofoperations may be adversely affected.

In the six months ended September 30, 2025 and September 30, 2024 and Fiscals 2025, 2024 and 2023,unsecured loans comprised 37.97%, 41.47%, 39.68%, 37.91% and 30.26% of our total assets undermanagement, respectively. If we are unable to recover such receivables in a timely manner or at all, ourbusiness, results of operations, cash flows and financial condition may be adversely affected.

We have experienced negative cash flows from operating activities in the past. Any negative cash flowsin the future would adversely affect our cash flow requirements, which may adversely affect our abilityto operate our business and implement our growth plans, thereby affecting our financial condition.

Our business is vulnerable to interest rate risk. In the six months ended September 30, 2025 andSeptember 30, 2024 and in Fiscals 2025, 2024 and 2023, our interest income accounted for 85.03%,89.29%, 88.10%, 88.52% and 88.05% of our total income, respectively. Volatility in interest rates couldhave an adverse effect on our net interest income and net interest margin, thereby affecting our resultsof operations and cash flows.

We require substantial capital for our business and any disruption in our sources of capital could havean adverse effect on our business, results of operations, cash flows and financial condition.

We may not be able to sustain or manage our growth or execute our growth strategy. If we fail to increaseour operational efficiency, we may have higher operating costs and lower profitability and cash flows oroperate our business effectively.

We are subject to various covenants and obligations under our financing arrangements. Inability tomeet our obligations could adversely affect our business, results of operations, cash flows and financialcondition.

We may face asset-liability mismatches, which could affect our liquidity and consequently, mayadversely affect our operations and profitability.