Non-bank lender Aye Finance has received Rs 137 crore of debt funding from German impact and portfolio management firm Invest in Visions.
The funding has come from IIV Mikrofinanzfonds and another private fund managed by Invest in Visions, Aye Finance said on Wednesday.
The fund will be used for on-lending to micro and small business units for their business expansion, it said.
“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,” Aye Finance chief financial officer Krishan Gopal said. “This new funding will allow us to reach out to a larger population of micro enterprises,” he added.
Aye Finance offers a diverse range of loan products specifically tailored to the distinct needs of MSMEs. Last month, Aye announced to have disbursed over Rs 10,000 crore in loans to the country’s grassroots business ventures.
Its active client base exceeds 450,000 micro enterprises and it has assets under management (AUM) of over Rs 4,000 crore.
Founded in 2006, Invest in Visions GmbH is the first microfinance fund in Germany. It also finances small and medium-sized enterprises.
