Aye Finance, a non-bank lender to micro, small and medium-sized enterprises (MSMEs), has raised Rs 250 crore (about $30 million) in a Series G funding round led by Singapore’s ABC Impact, the pan-Asia impact investor backed by Temasek and Temasek Trust.
The UK’s development finance institution and impact investor British International Investment (BII) also took part in the round, the company said in a statement. BII had led Aye Finance’s Series F round of Rs 310 crore in December 2023.
The latest transaction marks the first investment made from ABC Impact’s Fund II.
Aye Finance provides working capital loans to MSMEs and has a network of 478 branches.
The assets under management of the company rose to Rs 4,400 crore as on March 31 from Rs 2,700 crore a year ago. The company reported a 67% rise in its revenue to Rs 1,072 crore in FY24 and its net profit tripled to Rs 161 crore.
However, the company’s gross non-performing asset ratio rose to 3.19% as on March 31, from 2.49% a year ago.
In a recent interaction with VCCircle, the company’s managing director and chief executive officer Sanjay Sharma said that the lender aimed to have assets under management of Rs 12,000 crore and profit of Rs 550-600 crore by FY27.
The company is backed by various alternative investment firms including A91 partners, Alpha Wave Global, BlueOrchard Finance, Elevation Capital, and Maj Invest, among others. With the latest funding round, Aye Finance’s equity raise totals Rs 1,250 crore.
“This capital infusion will enable us to scale our operations and enhance our ability to deliver value to our target segment of micro enterprises,” Sharma said, referring to the latest funding round.
