Fintech Aye Finance, backed by Alphabet, will create 100 new branches in 3 months

Aye Finance, a new-era non-banking finance company, is eyeing 50% growth in its loan portfolio this fiscal year and is confident of going back to the black, now that its business activity has returned to pre-pandemic levels, its director General Sanjay Sharma said.

This Capital G-backed fintech (the investment arm of Google parent Alphabet), which began its journey in 2014, plans to open 100 new brick-and-mortar branches in the next three months, bringing its overall branch network to 411. Sharma told BusinessLine here in an interview.

The new branches will be rolled out across India and will not be limited to any particular area, he added.

Focus on micro-enterprises

This Gurugram-headquartered NBFC – primarily focused on supporting micro-enterprises – had turned a profit since 2016-17 for consecutive years, but fell into the red in the last fiscal year, largely due to write-offs resulting from Covid19-related business disruptions for some of its customers.

Sharma said Aye Finance closed the fiscal year ending March 2022 with a loan portfolio of ₹1,730 crore and plans to make disbursements of around ₹2,400 crore in this fiscal year.

“We are in profit in the first quarter of this financial year. We will come back in black this financial year. We expect a strong demand for loans from micro and small businesses during the next session of the festival, which will be a inflection point,” he said.

When asked why NBFC is looking to establish physical branches in the current digital age, Sharma said, “Our micro business client is still not comfortable going to a digital market and apply for a loan. Our loan officers in our branches will offer them an assisted journey”.


Sharma said Aye Finance’s top priorities this fiscal year are growth, employee retention and profitability. “During Covid19, we were an employee-centric organization and we didn’t ask anyone to leave or take pay cuts,” he said, adding that the company was now facing a lot of attrition and leaks. of talent.

He said there were delinquency issues, especially among his new clients, but it still wasn’t a challenge.

Published on

July 26, 2022