[Funding alert] Aye Finance raises Rs 75 Cr debt

Aye Finance, a MSME lending platform has raised a debt round of Rs 75 crore from leading global impact investment manager, Triple Jump BV and Northern Arc a diversified non-banking finance company (NBFC).

The lender plans to use the funds to provide loans to the under-served segment of micro-enterprises.

Gurgaon-based company was founded in 2014 by Sanjay Sharma, Vikram Jetley, The CapitalG-backed Aye Finance is a new-age finance company providing business loans to small and micro enterprises across India.

“This fund raise underscores the trust the investor community has in our model and in our ability to achieve our mission of easing access for the grassroots businesses to affordable and customised credit solutions”, said, Sanjay Sharma, Managing Director, Aye Finance.

“Triple Jump has funded Aye Finance since 2018. We are happy to further expand our relationship through this joint transaction with Northern Arc. Over the years, Aye Finance has made a tremendous impact for MSME’s in India that have difficulties obtaining funding. Triple Jump is proud to have partnered with Aye Finance and is looking forward to continuing to support the company in its mission”, said, Jarri Jung, Director Financial Institutions at Triple Jump.

“Northern Arc Capital strongly believes that bridging the huge credit requirement of the MSME sector especially as they rebuild from the impact of the COVID-19 pandemic is essential to drive economic growth across the country. Aye Finance has played a pivotal role in funding MSMEs and ensuring last mile delivery of financial services. We are pleased to support Aye Finance in this phase of growth, cementing a long and fruitful partnership,” said, Bama Balakrishnan, COO, Northern Arc Capital.

The company has so far disbursed more than Rs 5,000 crore to over 3.5 lakh micro-enterprises.               

Aye Finance recently announced the opening of 100 new centres, taking its geographical presence to 311 across 20 states in India.