Small and medium enterprise (SME)-focussed lender Aye Finance has raised $16.2 million (around Rs 137 crore) in debt funding from IIV (Invest in Visions) Mikrofinanzfonds and another private fund managed by the German impact investment and portfolio management firm.
This fresh infusion of capital will strengthen Aye Finance's ability to provide financial support to underserved MSMEs across India, the company said in a media release Wednesday, adding that it will use the funds for on-lending to these businesses.
“Invest in Visions’ commitment to supporting inclusive growth aligns perfectly with our mission to empower MSMEs in India. 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,” said Krishan Gopal, chief financial officer, Aye Finance.
The Gurugram-based company provides loan products tailored to the needs of MSMEs. It recently raised Rs 310 crore in its Series F equity round by British International Investment. It also counts Elevation Capital, CapitalG, Alpha Wave, Lightrock, A91 Partners and Maj Invest as its investors.
To date, it has disbursed over Rs 10,000 crore in loans to businesses. It claims to have an active client base exceeding 4.5 lakhs micro-enterprises and assets under management of over Rs 4,000 crore.
Aye Finance made a remarkable turnaround in the financial year that ended March 2023. It posted a net profit of Rs 53.8 crore in FY23 as against a net loss of Rs 47.7 crore in the year before. Its revenue rose to Rs 643 crore from Rs 443 crore.
Invest in Visions gets execution support from Agents For Impact (AFI), a sustainability connector of investors and social impact organizations. Previously, it invested in DVARA KGFS and ASA International.
