Aye Finance net profit halves to Rs 30 crore in June quarter

28 Aug 2025, 02:47 PM

Aye Finance's total income jumped almost 19% to Rs 416.13 crore in the June quarter this year from Rs 350.64 crore in the same period last year.

Team Head&Tale

Gurugram-based SME lender Aye Finance Ltd' net profit halved to Rs 30.59 crore in the quarter ended June 30, 2025 as compared to Rs 60.94 crore in the same quarter last year.

The company's net profit was also lower than the Rs 40.70 crore clocked in the quarter ended March 31, 2025, as per an independent auditor's report.

The fall in net profit could be attributed to the increase in impairment on financial instruments that rose from Rs 48.59 crore in the quarter ended June last year to Rs 86.71 crore in the quarter ended June this year. Employee benefit expenses also grew to Rs 115.30 crore in the quarter ended June 2025 from Rs 82.46 crore in the same quarter last year.

Aye Finance's total income jumped almost 19% to Rs 416.13 crore in the June quarter this year from Rs 350.64 crore in the same period last year. On a sequential basis, however, the company's total income fell slightly as it had reported a total income of Rs 420.11 crore in the quarter ended March 31, 2025.

In December last year, the Elevation Capital-backed company had filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO). It received the approval for the IPO from the SEBI in April this year.

The company aims to raise a total of Rs 1450 crore through its IPO -- which includes a fresh issue of equity shares worth Rs 885 crore and an offer for sale (OFS) amounting to Rs 565 crore.

Among those participating in the OFS are investors such as LGT Capital (Rs 150 crore), CapitalG LP (136.8 crore), A91 Emerging Fund (Rs 100 crore), Alpha Wave Ventures (Rs 100 crore) and MAJ Invest (Rs 56 crore). Individual shareholders such as Harleen Kaur Jetley and Vikram Jetley will sell Rs 14.5 and Rs 7.6 crore worth of shares respectively. 

Aye Finance's largest shareholder Elevation Capital (formerly SAIF Partners) is not participating in the offer for sale.

As per the DRHP, Elevation Capital owns 16.19% stake in Aye Finance, followed by LGT Capital (14.13%) and Alpha Wave (11.21%), CapitalG (10.26%), BII (9.51%), and A91 (9.23%).

Axis Capital, IIFL Capital Services, JM Financial and Nuvama Wealth Management are the book-running lead managers for the issue.

Who Reads Us

I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest,  and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.

Rahul Chari, Co-Founder and CTO, PhonePe
Rahul Chari Co-Founder And CTO, PhonePe

Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.

Rishi Gupta, MD & CEO, Fino Payments Bank
Rishi Gupta MD & CEO, Fino Payments Bank

The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.

Lizzie Chapman, co-founder, ZestMoney
Lizzie Chapman Co-founder, ZestMoney

What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.

Mohit Bedi, co-founder, Kiwi
Mohit Bedi Co-founder, Kiwi

I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.

Cofounder of IPO-bound leading fintech lending company
Cofounder of IPO-bound leading fintech lending company