Aye Finance, a prominent non-banking finance company, has successfully raised ₹250 crore ($30 million) in debt funding from FMO, the Dutch entrepreneurial development bank. This capital injection aims to stregthen Aye Finance’s mission of promoting financial inclusion by extending affordable loans to underserved Micro, Small, and Medium Enterprises (MSMEs) across India.
The funding, facilitated through non-convertible debentures, underscores Aye Finance’s commitment to addressing the financing challenges faced by micro enterprises. Krishan Gopal, CFO of Aye Finance, highlighted the significance of this partnership with FMO, which began in 2019, in making accessible credit a reality for marginalized business segments in India.
Gopal emphasized, “This latest funding from FMO will enable us to significantly scale our lending operations, reaching grassroots businesses that are integral to the Indian economy but often excluded from formal credit channels.”
Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, expressed enthusiasm about supporting Aye Finance once again in expanding its loan portfolio nationwide. He noted, “FMO is excited to continue our partnership with Aye Finance as they target the ‘missing middle’, bridging gaps in traditional banking systems and empowering more businesses.”
In the fiscal year 2023-24, Aye Finance reported substantial growth with a net profit of ₹161 crore and a revenue increase of 67% to ₹1,072 crore, underscoring its expanding role in the MSME lending sector.