Aye Finance secures EUR 15 million from Invest in Visions

02. April 2024

Aye Finance, a leading Non-Banking Financial Company (NBFC) focused on micro, small and medium-sized enterprises (MSMEs) in India, secures EUR 15 million (approximately INR 137 crore) in debt funding from IIV Mikrofinanzfonds managed by Invest in Visions, a leading German impact investment and portfolio management firm, with execution support from Agents For Impact (AFI), a sustainability connector of investors and social impact organizations. This fresh infusion of capital will further strengthen Aye Finance’s ability to provide crucial financial support to underserved MSMEs across India. The funds will be used for on-lending to these businesses, enabling them to grow and contribute to the nation’s economic development.

Aye Finance, recognized for its unique “phygital” model and “Cluster-based Credit Assessment” methodology, has established itself as a pioneer in transforming micro enterprise lending in India. The company offers a diverse range of loan products specifically tailored to the distinct needs of MSMEs, empowering them to navigate critical growth stages, overcome financial hurdles, and contribute meaningfully to the economic metrics of the country. The lender recently closed its Series F equity round of INR 310 crore which was led by British International Investment. Aye also announced last month that it had disbursed over INR 10,000 crore in loans to grassroots businesses in India demonstrating its commitment to empowering small businesses and fostering inclusive growth. The company has an active client base which exceeds 4.5 lacs micro enterprises and an AUM of over INR 4,000 crore.

We are delighted to partner with Invest in Visions. Their 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. We are confident that this will enable us to empower even more entrepreneurs and unlock their full potential, ultimately contributing to job creation and economic prosperity across the country.

Krishan Gopal, CFO, Aye Finance

Camellia Genova, Senior Portfolio Manager at Invest in Visions commented about her latest visit of Aye Finance at the end of January 2024: “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. Financing of micro enterprises and SMEs, often referred to as “the missing middle”, is crucial as they provide most of the jobs in the country. 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.”