Microlender Aye Finance Secures INR 250 Cr in Series G Funding Led by ABC Impact With the raised capital, Aye Finance aims to scale its operations and enhance its ability to deliver value to its target segment of microenterprises.
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Microlending platform Aye Finance has raised INR 250 crore (USD 30 million) in its Series G funding round, led by Singapore-based ABC Impact.
The funding round also saw participation from British International Investment (BII), a UK-based development finance institution and impact investor. BII had previously led Aye's Series F round in December 2023, raising INR 310 crore (USD 37 million). This new capital infusion follows a USD 30 million debt raised by Aye in June this year.
The Series G funding marks the first investment from ABC Impact's Fund II, which now boosts the firm's assets under management (AUM) to over USD 850 million. The completion of this deal is subject to standard regulatory conditions. With the latest funding round, Aye's total equity raise has reached INR 1,250 crore (USD 150 million).
Sanjay Sharma, Founder and Managing Director of Aye Finance, said, "We are excited to announce our Series G equity round. We have been fortunate to have stellar names from the industry partner with us in our mission to enable financial inclusion of the underserved segment right since 2014. This capital infusion will enable us to scale our operations and enhance our ability to deliver value to our target segment of microenterprises."
Founded in 2014, Aye Finance focuses on providing working capital loans to microenterprises, offering products like quasi-mortgage, hypothetical, and add-on loans.
To date, the Gurugram-based platform claims to have disbursed over INR 7,600 crore (USD 915 million) in loans to more than 5,76,000 businesses, with a 60% repeat customer rate. The company operates across 478 branches in 22 states, primarily catering to micro and small enterprises in the manufacturing, trading, and service sectors.
Sugandhi Matta, Chief Impact Officer of ABC Impact, said, "India is a country of micro-entrepreneurs (MSMEs). However, this important segment of the economy is significantly underserved by formal credit. Our partnership with Aye Finance will support these micro-entrepreneurs with better access to credit so that they can grow their businesses and realise their full potential."
