Aye Finance has secured €15 million ($16.2 million) in debt funding for expanding on-lending to underserved medium, small, and micro enterprises (MSMEs).
“This new funding will enable 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.” Krishan Gopal, CFO of Aye Finance, stated.
The Gurugram-based non-banking financial company has disbursed over Rs 10,000 crore in loans to grassroots businesses in India as of February 2024,. The company boasts an active client base of more than 4.5 lakh micro-enterprises and assets under management (AUM) exceeding Rs 4,000 crore.
“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,” Camellia Genova, Senior Portfolio Manager at Invest in Visions, said.
“Visiting clients of Aye Finance revealed how entrepreneurial Indian citizens are, and how successful they can be in their businesses with the right financial partners,” Genova added.
Invest in Visions GmbH, founded in 2006 by Edda Schröder, aims to provide institutional and private investors with access to impact investments that offer social returns alongside financial returns, fostering a positive impact on society and the environment.
The latest round of funding was raised from German impact investor Invest in Vision’s private funds including IIV Mikrofinanzfonds. The execution support was provided by Agents For Impact (AFI), a sustainability connector for investors and social impact organisations.
