Aye Finance, an MSME lender providing working capital to the underserved community of micro-enterprises in India, announced entering into definitive agreements for ₹250 crore in Series G funding, led by Singapore’s ABC Impact, a Pan-Asia impact investor backed by Temasek and Temasek Trust.
This transaction marks the first investment made from ABC Impact’s Fund II. ABC Impact has a growing AUM of over $850 million.
This round also saw participation from British International Investment, the UK’s development finance institution and impact investor who led Aye’s Series F round of ₹310 crore in December 2023. The deal completion is subject to the completion of standard conditions precedent. With this round, Aye’s equity raise totals ₹1,250 Crore.
In August 2024, Aye Finance has closed a ₹212 crore business loan securitisation transaction with Goldman Sachs (India) Finance Private Limited, the NBFC arm of Goldman Sachs in India.
Speaking on the occasion, Sanjay Sharma, Founder and Managing Director of Aye Finance said, “We are excited to announce our Series G equity round. We have been fortunate to have stellar names from the industry partner with us in our mission to enable financial inclusion of the underserved segment right since 2014. We are delighted to partner with ABC Impact in this round and look forward to maximizing impact. This capital infusion will enable us to scale our operations and enhance our ability to deliver value to our target segment of micro-enterprises.”
Sugandhi Matta, Chief Impact Officer of ABC Impact, said, “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. We are encouraged by the team’s strong commitment to customer-centricity, disciplined underwriting, and solid operational performance. Their focused use of technology has enabled scalable growth across the country, positioning them as a notable lender for their target segment.”
Aye is a small-ticket lender in the MSME lending landscape providing working capital loans to micro-enterprises. Founded in 2019, ABC Impact invests in companies that drive positive change by addressing the world’s most pressing challenges such as climate change, resource scarcity, and deepening inequality.
A division of Singapore-based global asset management firm Temasek Trust Asset Management, the fund focuses on innovative solutions that drive financial and digital inclusion, better health and education, climate and water solutions, as well as sustainable food and agriculture. It is a signatory of the Operating Principles for Impact Management and the United Nations-supported Principles for Responsible Investment.
