Aye Finance, one of the country’s largest micro-enterprise lenders, has entered into definitive agreements for Rs 310 crore in Series F funding, led by UK’s development finance institution and impact investor, British International Investment (BII). The Waterfield Fund of Funds and Aye’s existing shareholder A91 Partners also participated in this round. The deal completion is subject to completion of standard conditions precedent. Aye has so far raised Rs 1,000 crore of equity.
Aye has transformed the MSME lending landscape in India since its inception in 2014 and is one of the most successful small-ticket lenders in this space providing working capital loans to micro-enterprises. The company is committed to easing access to credit for small businesses and has disbursed Rs 8,000 crore to the segment since inception bringing over 700,000 unorganised businesses into the formal lending ecosystem.
Along with enabling financial inclusion of this historically underserved segment, Aye has also been consistently delivering profits to its investors. The company has over Rs 3,600 crores of Asset Under Management and has delivered Rs 80 crore of PAT in the first six months of FY24.
Avendus Capital was the exclusive financial advisor to Aye Finance for this transaction.
Speaking on the occasion, Sanjay Sharma, Co-founder, MD & CEO of Aye Finance said “Aye Finance is on a growth journey and we are delighted to partner with BII who have a deep understanding of the financial services sector in India. This equity raise is a testament to the strong conviction that investors have in a high-quality franchise such as Aye. We believe there is immense potential in lending to underserved microenterprises and the fresh capital will provide a strong fillip to our compounding story. We look forward to this partnership and hope it will help us achieve new heights.”
Gaurav Malhotra, Director for Financial Services, British International Investment, said, “There are over 64 million MSMEs in India and only 11 per cent of micro enterprises have access to formal credit. Therefore, I am thrilled that through partnering with Aye, we are not only helping to bridge this gap but also enabling micro entrepreneurs and their employees to grow their businesses and incomes. Our investment in Aye Finance underscores our commitment to back companies that have a strong development impact philosophy and promote financial inclusion for India’s underserved groups. The team from Aye stands out for its dedication and experience in offering tech-enabled financing solutions with high potential for scalability.”
