Fintech company Aye Finance on Thursday said it has raised $10 million (about ₹71 crore) in funding from Zurich-based responsAbility Investments AG.
The company has been supporting Aye in its mission to create an inclusive India since 2017 and this is the fifth investment via debt for the fintech lender.
“Aye will be utilising these additional funds to offer business loans to the excluded micro-enterprise sector to support their growth and enable their inclusion into the formal economy,” a statement said.
Aye Finance has raised more than ₹550 crore in debt in the last three months, of which ₹86 crore was from BlueOrchard and ₹65 crore was from Symbiotics.
“We are currently witnessing a surge in credit applications from the microenterprise 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 customized business loans at affordable prices,” said Sanjay Sharma, MD and Founder of Aye Finance.
“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,” said Rudrashis Roy, Investment Officer at responsAbility Investments AG.
Founded in 2014, Aye provides unsecured small-ticket business loans to a large credit-starved micro-enterprise segment. The lender is backed by CapitalG, Elevation Capital, Light Rock, Alpha Wave, A91 Partners, and MAJ Invest.
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