MSME lender Aye Finance on Friday announced raising Rs 250 crore in Series G funding round led by Singapore’s ABC Impact, the pan-Asia impact investor backed by Temasek and Temasek Trust. Existing investor in the company British International Investment (BII), the UK’s development finance institution and impact investor also participated in the round. BII had led Aye Finance’s Series F round of Rs 310 crore in December 2023.
The latest round would take the company’s total equity capital infusion to Rs 1,250 crore. The transaction also marks the first investment from ABC Impact’s Fund II. ABC Impact has assets under management (AUM) worth more than $850 million.
Speaking on the latest funding round, Sanjay Sharma, Founder and Managing Director of Aye Finance said the capital infusion will “enable us to scale our operations and enhance our ability to deliver value to our target segment of micro enterprises.”
Aye Finance enables working capital loans to micro enterprises with underwriting based on evaluating cash flows.
“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 realize their full potential,” said Sugandhi Matta, Chief Impact Officer, ABC Impact.
Aye Finance had reported Rs 161 crore in profit after tax in FY24 on a revenue of Rs 1072 crore vis-a-vis Rs 57 crore PAT in FY23 while revenue was at Rs 643.34.