Aye Finance, a Non-Banking Financial Company (NBFC) focused on medium, small and micro enterprises (MSMEs) in India, has announced securing approximately Rs 137 crore in debt funding. This funding has come from IIV Mikrofinanzfonds and another private fund managed by Invest in Visions, a German impact investment and portfolio management firm, with execution support from Agents For Impact (AFI), a sustainability connector of investors and social impact organizations.
This fresh infusion of capital will further strengthen Aye Finance's ability to provide crucial financial support to underserved MSMEs across India, reads a company statement. The funds will be used for on-lending to these businesses, enabling them to grow and contribute to the nation's economic development.
Commenting on the latest fund raise, Krishan Gopal, CFO, Aye Finance, said, “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, recently closed its Series F equity round of Ra 310 crore which was led by British International Investment. Aye also announced last month that it had disbursed over Rs10,000 crore in loans to grassroots businesses in India demonstrating its commitment to empowering small businesses and fostering inclusive growth.
The company has a client base which exceeds 4.5 lakhs micro enterprises and an AUM of over Rs 4,000 crore. The company’s founder and managing director, Sanjay Sharma in an interview with Mint, told that it is looking for an IPO in 2026.
Camellia Genova, Senior Portfolio Manager at Invest in Visions commented “Financing of micro enterprises and SMEs, often referred to as "the missing middle", is crucial as they provide most of the jobs in the country. Visiting clients of Aye Finance revealed how entrepreneurial Indian citizens are, and how successful they can be in their businesses with the right financial partners.”
The partnership between Aye Finance, Invest in Visions, and Agents for Impact will not only empower MSMEs but also contribute significantly to the financial inclusion landscape of India, reads a company statement.
