“Can a data-science-led NBFC become the dominant lender to India's unbanked micro-enterprise (Kirana / MSME) segment?”
Founded in 2014 as an RBI-registered NBFC to serve India's micro-enterprise segment — particularly Kirana stores and small manufacturers that traditional banks ignore. Built a 'cluster-based' credit underwriting model using data science to lend without conventional financial documentation. Scaled to pan-India coverage with 499+ branches across 22 states. Pivoted from purely unsecured hypothecation lending into a broader product mix including mortgage loans and SwitchPe (a credit-backed B2B payment solution for merchant procurement). Went public in 2025.
Aye Finance discloses Aye Finance Limited (in-house, NBFC-ML) as its banking provider, according to the Embedded Finance Index 2026.
Aye Finance does not disclose a bank charter of its own; its banking services are provided through Aye Finance Limited (in-house, NBFC-ML).
Aye Finance processes payments through SwitchPe (self-operated).
Aye Finance's lending and capital products are provided by Aye Finance Limited (in-house).
The Embedded Finance Index 2026 maps 3 layers in Aye Finance's stack: Payments / PSP (SwitchPe (self-operated)); Banking / BaaS (Aye Finance Limited (in-house, NBFC-ML)); Lending (Aye Finance Limited (in-house), Secured Hypothecation Loan, Unsecured Hypothecation Loan, Mortgage Loan and 2 others).
Aye Finance is founded in 2014 and headquartered in Gurugram, Haryana, India.
Aye Finance has raised ~$200M+ (pre-IPO) in total (latest round: Series G, 2024 (₹250 Cr led by ABC Impact); IPO 2025; valuation: ~$400M (pre-IPO, 2024)).
Get a read on where your own stack stands against Aye Finance and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.