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Aye Finance, a new-age non-banking financial company (NBFC) focused on micro, small and medium enterprises (MSMEs), has secured €15 million (about ₹137 crore) in debt funding through the external commercial borrowing route.
Backed by Capital G (Google parent Alphabet’s investment arm), Aye Finance says the capital infusion will strengthen its efforts to provide financial support to underserved MSMEs across India.
The funding is from IIV Mikrofinanzfonds and another private fund managed by Invest in Visions, a German impact investment and portfolio management firm, with execution support from Agents For Impact (AFI), a sustainability connector of investors and social impact organisations.
Krishan Gopal, CFO, Aye Finance, said, “This new funding will allow us to reach out to a larger population of micro enterprises and offer them innovative financial products designed to meet the diverse needs of MSMEs.
“We are confident that this will enable us to empower even more entrepreneurs and unlock their full potential, ultimately contributing to job creation and economic prosperity across the country.”
Aye Finance recently closed its Series F equity round of ₹310 crore, which was led by British International Investment.
The company announced last month that it had disbursed over ₹10,000 crore in loans to grassroots businesses in India. It said its client base exceeds 4.5 lakh micro enterprises and has assets under management worth over ₹4,000 crore.
Camellia Genova, Senior Portfolio Manager at Invest in Visions, said, “We very much appreciate our cooperation with Aye Finance in their mission to provide socially responsible funding to MSMEs in India, which are traditionally underserved by banks and often grown out of microfinance. Financing of micro enterprises and SMEs, often referred to as “the missing middle”, is crucial as they provide most of the jobs in the country.”
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