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Microlending platform Aye Finance raised $30 M Debt funding from FMO

The Dutch entrepreneurial development bank FMO has provided debt funding totalling Rs 250 crore ($30 million) to the microlending platform Aye Finance. For the previous six months, the Gurugram-based company has raised a total of two rounds of funding.

Aye Finance said in a press release that the money raised will be used to support its objective of financial inclusion by lending money to underprivileged MSMEs all over India.

With the help of Waterfield Fund and current backer A91 Partners, British International Investment led Aye Finance’s $37 million Series F funding round in December. The company secured convertible debentures worth Rs 1,043 crore ($125 million) during FY23, even though the equity round was delayed by three years.

With over 398 branches operating in 22 states throughout India, Aye Finance primarily deals with manufacturing, trading, and service groups. It offers financial services to micro and small businesses.

From Rs 50,000 to Rs 1,000,000, the company offers three products: quasi-mortgage loans, hypothetical loans, and add-on loans. With a 60% repetition rate, the company claims to have dispensed over 7,600 crore ($915 million) in credit to over 5,76,000 businesses thus far.

The operations revenue of Aye Finance increased by 44.5% to Rs 623 crore in FY23, and the company made a healthy profit of Rs 54 crore. The company reports that in FY24, revenue increased by 67% to Rs 1072 crore and profit increased three times to Rs 161 crore.

Assets under management (AUM) at the end of FY24 were Rs 4,500 crore, and the gross non-performing assets (NPA) were 1.21%.

Its rivals include Flexiloans, Lendingkart, Axio (formerly Capital Float), Indifi, and a number of other NBFCs.

 

 

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