Aye Finance Secures $16.2M Debt Funding from German Impact Investors

• ByStartupStory     |    March 28, 2024

Aye Finance, a leading non-banking financial company (NBFC), has secured a substantial €15 million ($16.2 million) in debt funding from German impact investor Invest in Vision’s private funds, including IIV Mikrofinanzfonds. The funding, facilitated by sustainability connector Agents For Impact (AFI), is set to empower Aye Finance in extending its lending reach to underserved segments of the MSME sector.

Krishan Gopal, CFO of Aye Finance, highlighted the transformative potential of this funding, stating, “This new funding will enable us to reach out to a larger population of micro-enterprises and offer them innovative financial products designed to meet the diverse needs of MSMEs.”

As of February 2024, Aye Finance has already disbursed over Rs 10,000 crore in loans to grassroots businesses across India, boasting an active client base exceeding 4.5 lakh micro-enterprises and assets under management (AUM) surpassing Rs 4,000 crore.

Camellia Genova, Senior Portfolio Manager at Invest in Visions, expressed the organization’s enthusiasm for collaborating with Aye Finance in their mission to provide socially responsible funding to India’s MSMEs. Genova remarked, “We very much appreciate our cooperation with Aye Finance in their mission to provide socially responsible funding to MSMEs in India, which are traditionally underserved by banks and often grown out of microfinance.”

Furthermore, Genova emphasized the entrepreneurial spirit observed among Indian citizens and the significant impact that the right financial partnerships can have on their businesses. “Visiting clients of Aye Finance revealed how entrepreneurial Indian citizens are, and how successful they can be in their businesses with the right financial partners,” she added.

Invest in Visions GmbH, founded in 2006 by Edda Schröder, is committed to providing institutional and private investors with access to impact investments that deliver social returns alongside financial gains, thereby fostering positive societal and environmental impact.

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