Aye Finance Secures $30 Million Funding in India for Microloans

Aye Finance, a prominent micro-lending platform in India, has secured INR 250 crore (USD 30 million) in its Series G funding round. The funding round was spearheaded by Singapore-based ABC Impact, signifying a significant boost for the company's mission to foster financial inclusion in India. The investment also witnessed participation from British International Investment (BII), a UK-based development finance institution and impact investor, demonstrating the growing confidence in Aye Finance's efforts.

• The funding round marks the first investment from ABC Impact's Fund II, propelling the firm's assets under management (AUM) to over USD 850 million.
• This latest funding round brings Aye Finance's total equity raise to a substantial INR 1,250 crore (USD 150 million).

Expanding Financial Inclusion in India Through Microloans

Aye Finance, established in 2014, specializes in providing working capital loans to microenterprises in India. These loans empower small and medium enterprises (MSMEs) to access vital financial resources, enabling them to expand their operations and contribute to India's economic growth.

• The company offers a range of loan products designed to cater to the specific needs of microenterprises, including quasi-mortgage, hypothetical, and add-on loans.
• Aye Finance's commitment to financial inclusion has enabled it to disburse over INR 7,600 crore (USD 915 million) in loans to more than 5,76,000 businesses across India.
• The company's impressive reach extends across 478 branches in 22 states, serving micro and small enterprises predominantly in the manufacturing, trading, and service sectors.

Strategic Partnerships Drive Growth for Aye Finance

The involvement of prominent investors like ABC Impact and British International Investment underscores the trust and confidence placed in Aye Finance's vision and its dedication to empowering microenterprises in India. These strategic partnerships are instrumental in fueling Aye Finance's expansion and enabling it to reach a broader segment of MSMEs in need of financial support.

• ABC Impact, with its strong focus on fostering sustainable economic growth, recognizes the vital role of micro-entrepreneurs in India's economic landscape. The company's investment signals its belief in Aye Finance's ability to bridge the financing gap for MSMEs and drive inclusive economic development.
• BII, a leading development finance institution, has shown its commitment to supporting Aye Finance's mission by participating in the Series F round and now the Series G round. This ongoing partnership demonstrates BII's confidence in Aye Finance's impact in promoting financial inclusion in India.

Aye Finance's Impact on Indian Microenterprises

Aye Finance's dedication to providing accessible microloans to microenterprises in India is making a significant impact on the lives of entrepreneurs and the overall economic landscape of the country. The company's success in disbursing loans and supporting the growth of MSMEs is contributing to job creation, wealth generation, and overall economic development in India.

• Aye Finance's high repeat customer rate of 60% indicates the positive impact the company is having on its borrowers, demonstrating the value and reliability of its services.
• The company's nationwide reach, spanning 22 states, ensures that even in underserved areas, microentrepreneurs have access to vital financial resources to grow their businesses.

The Future of Microfinance in India: Aye Finance's Vision

The success of Aye Finance highlights the growing importance of microfinance in India. The company's dedication to providing accessible and affordable loans to MSMEs is enabling these enterprises to flourish and contribute to the overall economic well-being of the country. Aye Finance's strategic partnerships and its commitment to financial inclusion position it as a key player in shaping the future of microfinance in India.

• With this recent funding round, Aye Finance is poised to further expand its reach and impact, empowering even more microenterprises in India to thrive and contribute to the nation's economic growth.
• The company's innovative approach to microfinance, coupled with its commitment to responsible lending practices, is setting a benchmark for the industry in India and beyond.