Aye Finance secures EUR 15 mn debt funding

MSME-focused NBFC Aye Finance on Friday said it has secured EUR 15 million (approximately Rs 137 crore) in debt funding, proceeds of which will be used for on-lending purposes.

The funding has come from IIV Mikrofinanzfonds and another private fund managed by Invest in Visions, a leading German impact investment and portfolio management entity, with execution support from Agents For Impact (AFI).

''This fresh infusion of capital will further strengthen Aye Finance's ability to provide crucial financial support to underserved MSMEs (medium, small and micro enterprises) across India,'' the company said in a release.

The funds will be used for on-lending to these businesses, enabling them to grow and contribute to the nation's economic development, it added.

''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,'' Aye Finance CFO Krishan Gopal said.

The company recently closed its Series F equity round of Rs 310 crore, which was led by British International Investment.

Aye has announced to disbursement of over Rs 10,000 crore in loans to grassroots businesses. It has an active client base of over 4.5 lakh micro-enterprises and an AUM of over Rs 4,000 crore.

Currently, more than EUR 873 million are managed by Invest in Visions in the core areas of microfinance and Impact Investing (as of February 29, 2024).

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)