Aye Finance, a prominent non-banking finance company, has announced the successful acquisition of ₹250 crore ($30 million) in debt funding from FMO, the Dutch entrepreneurial development bank. This strategic investment, facilitated through non-convertible debentures, aims to advance Aye Finance’s mission of promoting financial inclusion by providing loans to underserved micro, small, and medium enterprises (MSMEs) across India.
Backed by Capital G, the investment arm of Alphabet (Google’s parent company), Aye Finance is poised to utilize these funds to scale its lending operations significantly. The infusion of capital from FMO marks a continuation of a productive partnership that began in 2019.
Krishan Gopal, CFO of Aye Finance, commented on this development, stating, “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.”
He further emphasized the critical role this funding will play in expanding Aye Finance’s reach, “This latest funding from FMO will be instrumental in allowing Aye to rapidly scale its lending efforts and include the grassroots businesses, which form the backbone of the Indian economy, in organized lending.”
Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, expressed FMO’s enthusiasm for continuing their support for Aye Finance. “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.”
Aye Finance has shown robust financial growth in recent years. For the fiscal year 2023-24, the company reported a net profit of ₹161 crore, a significant increase from ₹57 crore in the previous year. The company’s revenue surged by 67 percent, reaching ₹1,072 crore in 2023-24, up from ₹643 crore in 2022-23.