MSME lender Aye Finance announced on Friday that it has successfully raised ₹250 crore in its Series G funding round, led by Singapore-based impact investor ABC Impact. ABC Impact, backed by Temasek and Temasek Trust, spearheaded the funding, with participation from Aye Finance’s existing investor, British International Investment (BII), the UK’s development finance institution and impact investor. BII had previously led the company’s Series F funding round of ₹310 crore in December 2023.
This latest capital infusion brings Aye Finance’s total equity raised to ₹1,250 crore. The transaction also marks the first investment from ABC Impact’s Fund II, which has assets under management (AUM) exceeding $850 million.
Commenting on the fresh funding, Sanjay Sharma, Founder and Managing Director of Aye Finance, stated that this capital will “enable us to scale our operations and enhance our ability to deliver value to our target segment of micro enterprises.” Aye Finance specializes in providing working capital loans to microenterprises, with a unique underwriting approach based on assessing cash flows.
ABC Impact’s Chief Impact Officer, Sugandhi Matta, highlighted the significance of Aye Finance’s mission, saying, “India is a country of micro-entrepreneurs (MSMEs). However, this important segment of the economy is significantly underserved by formal credit. Our partnership with Aye Finance will support these micro-entrepreneurs with better access to credit so that they can grow their businesses and realize their full potential.”
In terms of financial performance, Aye Finance reported a profit after tax (PAT) of ₹161 crore for FY24, with revenue totaling ₹1,072 crore. This marks a significant improvement compared to FY23, when the company reported a PAT of ₹57 crore on a revenue of ₹643.34 crore.
With this new funding, Aye Finance is poised to continue its mission of supporting India’s micro-entrepreneurs by improving access to formal credit, thereby helping them scale their businesses and unlock their full potential.
