Aye Finance, a non-banking finance company, has raised ₹250 crore ($30 million) in debt funding from FMO, the Dutch entrepreneurial development bank.
This Capital G (Google parent Alphabet’s investment arm)- backed fintech plans to use the proceeds of this debt funding to further Aye’s mission of financial inclusion by extending loans to underserved MSMEs across India. The fundraise has been done through non-convertible debentures.
Commenting on the development, Krishan Gopal, CFO, Aye Finance, said, “Our association with FMO dates back to 2019 and through our collaborative efforts we have been making affordable credit a reality for the ignored segment of micro enterprises in India.
Lack of access to timely financing remains a key roadblock for millions of hard-working microbusiness owners, and we are laser-focused on bridging that gap across the country.”
He said this latest funding from FMO will be instrumental in allowing Aye to rapidly scale its lending efforts and include the grassroots businesses, which form the backbone of the Indian economy, in organized lending.
Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, said, “FMO is thrilled to support our long-term client Aye Finance once again as they expand their loan portfolio across India, targeting the missing middle who would otherwise be locked out of the formal credit system of traditional banks”.
For the year 2023-24, Aye Finance reported a net profit of ₹161 crore (₹57 crore in 2022-23). The company’s revenue grew 67 per cent in 2023-24 to ₹1,072 crore (₹643 crore).