MSME Lending Platform Aye Finance Raises $10M In Funding
MSME lending platform Aye Finance has raised $10 million of ECB (External Commercial Borrowings) from Swiss-based responsAbility Investments AG.
As per the lending platform, the raised funds will be used to offer business loans to the excluded micro-enterprise sector to support its growth and enable its inclusion into the formal economy.
Aye Finance | Empowering The Economic Transformation Of Micro-enterprises
Founded in 2014, Aye Finance provides business loans to small and micro enterprises across India. Since its inception, the fintech firm has been empowering the economic transformation of micro-enterprises and has disbursed over Rs 5,000 crore to over 3.5 lakh micro-enterprises.
Speaking about the development, Sanjay Sharma, MD and Founder of Aye Finance, said,
“We are currently witnessing a surge in credit applications from the micro-enterprise sector as businesses are being rebuilt post the disruptions caused by the pandemic. The support we are receiving from global impact leaders like responsAbility allows us to continue in our mission of transforming microenterprise lending in India by providing entrepreneurs customised business loans at affordable prices.”
As per the firm micro businesses in India have an unmet credit need of USD 3 bn. It provides secured and unsecured small business loans to these micro-enterprises for working capital requirements.
In March 2022, the MSME lending firm raised a debt round of Rs 75 crore from leading global impact investment manager Triple Jump B and Northern Arc.
responsAbility is headquartered in Zurich and is a leading asset manager for impact investments in emerging economies. It has been supporting Aye in its mission to create an inclusive India since 2017. This investment is the fifth investment via debt for the fintech lender.
Commenting on the development, Rudrashis Roy, Investment Officer at responsAbility Investments AG, said,
“For over five years now, Aye Finance has been a trusted partner in our endeavour to bridge the credit gap in the micro-enterprise sector via private capital funding. We are once again delighted to collaborate with Aye to support the growth of small, resilient businesses post a difficult couple of years.”
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