Aye Finance, a leading microlending platform for micro and small enterprises (MSEs), has raised Rs 250 crore ($30 million) in a Series G funding round, led by Singapore’s ABC Impact. This round also saw participation from British International Investment (BII), the UK’s development finance institution and impact investor, which had previously led Aye’s Series F round of Rs 310 crore ($37 million) in December 2023. Additionally, in June 2024, Aye raised $30 million in debt.

aye finance

This marks the first investment from ABC Impact’s Fund II, bringing the firm’s assets under management (AUM) to over $850 million. The completion of this deal is subject to meeting standard conditions precedent. With this round, Aye Finance has now raised a total of Rs 1,250 crore ($150 million) in equity funding.

Aye Finance, which operates across 398 locations in 22 states in India, offers financial services tailored to micro and small enterprises, primarily those involved in manufacturing, trading, and services.

The company provides three key loan products—quasi-mortgage loans, hypothetical loans, and add-on loans—ranging in value from Rs 50,000 to Rs 1,000,000. Aye Finance reports having disbursed over Rs 7,600 crore ($915 million) in loans to more than 5,76,000 businesses, with a 60% repeat loan rate.

In FY23, Aye Finance’s revenue from operations grew by 44.5% to Rs 623 crore, with a profit of Rs 54 crore. The company projects even stronger performance for FY24, with revenue up 67% to Rs 1,072 crore and profit tripling to Rs 161 crore.

By the end of FY24, Aye Finance reported Rs 4,500 crore in AUM and a gross NPA of 1.21%. The firm competes with several non-banking financial companies (NBFCs) such as Indifi, Axio (formerly Capital Float), Lending kart, Flexiloans, and others.

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