Alphabet Inc’s Growth equity fund CapitalG-backed Aye Finance, a fintech focused on lending to micro enterprises, has raised ₹75 crore debt from leading global impact investment manager Triple Jump BV and Northern Arc, a diversified non-banking finance company (NBFC).
This fund-raise will be used for on-lending by Aye Finance, which was incepted in 2014 and since then has disbursed over ₹5,000 crore to over 3.5 lakh micro enterprises.
Despite the disruption caused by the pandemic, Aye has continued to raise funds from leading impact investors that have backed the lender in its mission of improving financial inclusion.
The NBFC is backed by CapitalG (Alphabet Inc Growth Equity Fund), Elevation Capital, LGT, Falcon Edge Capital, A91 Partners and MAJ Invest, and over twenty investors that support it through the debt route.
Commenting on the latest fund raise, Sanjay Sharma, Managing Director, Aye Finance, said, “This fund-raise underscores the trust the investor community has in our model and in our ability to achieve our mission of easing access for the grassroots businesses to affordable and customised credit solutions.”
Jarri Jung, Director Financial Institutions at Triple Jump, said: “Over the years, Aye Finance has made a tremendous impact for MSME’s in India that have difficulties obtaining funding.”
Bama Balakrishnan, COO, Northern Arc Capital, said, “Bridging the huge credit requirement of the MSME sector especially as they rebuild from the impact of the Covid-19 pandemic is essential to drive economic growth across the country. Aye Finance has played a pivotal role in funding MSMEs and ensuring last mile delivery of financial services.”
Recently, Aye Finance had announced the opening of 100 new centres which took its geographical presence to 311 in 20 States. With this fresh infusion of funds, the lender will make credit a reality for an even larger population of the underserved segment of micro enterprises.