Micro-enterprise fintech lender Aye Finance has raised Rs 310 crore (around $37.2 million) in a Series F funding round, led by UK's development finance institution and impact investor, British International Investment (BII).
The Waterfield Fund of Funds and Aye’s existing shareholder A91 Partners also participated in this round.
Aye has so far raised Rs 1,000 crore in equity transactions. Its other investors include CapitalG, Elevation Capital, Lightrock, Alpha Wave, A91 Partners and MAJ Invest.
Founded in 2014, Aye provides loans to micro, small and medium enterprises. Headquartered in Gurugram, the company has 395 branches across 22 states. It primarily offers mortgage, hypothecation and term loans.
“Aye Finance is on a growth journey. This equity raise is a testament to the conviction that investors have in Aye. We believe there is potential in lending to underserved microenterprises and the fresh capital will provide a fillip to our compounding story,” said Sanjay Sharma, co-founder, managing director and chief executive officer of Aye Finance.
To date, Aye has disbursed Rs 8,000 crore to MSMEs to more than 7 lakh unorganised businesses. The company currently has an AUM of Rs 3,600 crore.
Aye posted a profit of Rs 53.8 crore in the financial year through March 2023, against a Rs 45.7 crore loss in FY22. In the first six months of financial year 2024, the company posted a profit after tax of Rs 80 crore.
“There are over 64 million MSMEs in India and only 11% of micro-enterprises have access to formal credit. Our investment in Aye Finance underscores our commitment to back companies that have a development impact philosophy and promote financial inclusion for India’s underserved groups,” said Gaurav Malhotra, director for financial services, British International Investment.
Avendus Capital was the exclusive financial adviser to Aye Finance for this transaction.
