Aye Finance, a prominent non-banking finance company, has secured ₹250 crore ($30 million) in debt funding from FMO, the Dutch entrepreneurial development bank. This Capital G-backed fintech intends to use the proceeds to further its mission of financial inclusion by extending loans to underserved MSMEs across India. The funds were raised through non-convertible debentures.
Commenting on the development, Krishan Gopal, CFO of Aye Finance, stated, “Our association with FMO dates back to 2019, and through our collaborative efforts, we have been making affordable credit a reality for the ignored segment of micro enterprises in India. Lack of access to timely financing remains a key roadblock for millions of hard-working microbusiness owners, and we are laser-focused on bridging that gap across the country.”
Gopal emphasized that this latest funding from FMO will be instrumental in allowing Aye to rapidly scale its lending efforts, including the grassroots businesses that form the backbone of the Indian economy, in organized lending.
Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, said, “FMO is thrilled to support our long-term client Aye Finance once again as they expand their loan portfolio across India, targeting the missing middle who would otherwise be locked out of the formal credit system of traditional banks.”
For the fiscal year 2023-24, Aye Finance reported a net profit of ₹161 crore, a significant increase from ₹57 crore in 2022-23. The company’s revenue grew by 67% in 2023-24, reaching ₹1,072 crore from ₹643 crore.
This funding marks a significant milestone in Aye Finance’s efforts to enhance financial inclusion and support the growth of micro enterprises across India.
