 "Amidst slowing bank funding, Aye Finance secures million to empower micro-enterprises, bolstering their mission to drive financial inclusion.")
Aye Finance, a non-banking financial company based in Gurugram, has successfully raised $30 million in a Series G funding round led by ABC Impact, which is backed by Temasek. This funding comes just eight months after Aye Finance secured $37 million in its Series F round, bringing its total funding to $164 million since 2014. The company focuses on providing small-ticket loans to micro-enterprises across its 478 branches in India. Sanjay Sharma, the founder, expressed excitement about the partnership and the potential to enhance their services for micro-businesses. ABC Impact, with over $850 million in assets, supports initiatives in financial inclusion and sustainable development, making this investment particularly impactful.
Aye Finance Secures $30 Million in Initial Investment Boost from ABC Impact
In a strategic move to strengthen its operations, Aye Finance, a prominent non-banking financial company (NBFC) based in Gurugram, has successfully raised $30 million in a Series G funding round. This fundraising effort was led by Singapore’s ABC Impact, an investor known for backing initiatives that create a significant social impact.
This latest funding follows a previous Series F round in which Aye Finance raised $37 million just eight months ago. Since its establishment in 2014, this growing company has accumulated a total of $164 million in funding. Aye Finance focuses on providing working capital loans specifically aimed at micro, small, and medium enterprises (MSMEs). With 478 branches spread across the country, they are committed to supporting micro-enterprises that often struggle to access traditional banking services.
Sanjay Sharma, the founder and managing director of Aye Finance, expressed enthusiasm about this partnership with ABC Impact. He stated that this new influx of capital will help the company scale its operations and enhance value delivery to its target micro-enterprise clients.
Notably, this investment marks the first contribution from ABC Impact Fund II, which manages assets exceeding $850 million. Sugandhi Matta, the chief impact officer of ABC Impact, commended Aye Finance for its dedication to customer-centricity, disciplined financial practices, and effective use of technology, which have significantly contributed to the company’s growth across India.
As the festival season approaches, the move by non-banking financial companies like Aye Finance to tap into debt capital markets reflects the growing credit demand as bank funding slows down. This trend highlights the critical role that NBFCs play in supporting the financial needs of small businesses.
This funding and strategic partnership emphasize the importance of inclusive financial solutions as businesses gear up for the upcoming festive season, ensuring they have the capital required to thrive.
Tags: Aye Finance, ABC Impact, funding, NBFC, MSME loans, debt capital Market, investment news, financial inclusion, small business lending.
What is Aye Finance?
Aye Finance is a non-banking financial company (NBFC) that provides financial services to small businesses in India.
How much money did Aye Finance raise in their recent funding round?
Aye Finance raised $30 million in their Series G funding round.
Who led the funding round?
The funding round was led by ABC Impact, a notable investor.
What will Aye Finance do with the raised funds?
Aye Finance will use the funds to expand its services and help more small businesses grow.
Why is this funding important for Aye Finance?
This funding will help Aye Finance reach more customers and improve its financial products, which is crucial for supporting small businesses in India.
