NBFC firm Aye Finance raises $30M in debt from Dutch Development Bank

Aye Finance, a non-banking finance company, has raised Rs 250 crore (approximately $30 million) in debt funding from FMO, the Dutch entrepreneurial development bank. The funding was obtained through non-convertible debentures.

The raised capital will be used to extend loans to underserved micro, small, and medium enterprises (MSMEs) across India. The effort aligns with Aye Finance's ongoing goal to bridge the financing gap for grassroots businesses that are often overlooked by traditional banks. 

“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," said Krishan Gopal, CFO of Aye Finance.

What is the significance of the partnership with FMO?

Aye Finance and FMO have maintained a partnership since 2019, focusing on providing affordable credit to micro-enterprises in India.

Gopal highlighted this collaboration, 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.”

Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, expressed his support for Aye Finance's initiatives: “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.”

Disbursed over Rs 12,000 crore

Founded in 2014 by Sanjay Sharma and Vikram Jetley, both former operators at Ujjivan Finance, Aye Finance has established itself as a key player in the MSME lending space.

The company has disbursed over Rs 12,000 crore in small-ticket loans to more than nine lakh businesses across India. Its focus on financial inclusion and support for micro-enterprises has positioned it as a crucial lender for the underserved segments of the Indian economy.