Aye Finance raises ₹250 crore in Series G funding round

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Aye Finance, an MSME lender and a non-banking finance company, has entered into definitive agreements to raise ₹ 250 crore in a Series G funding round.

With this round, Capital G (Google parent Alphabet’s investment arm)-backed fintech’s equity raise totalled ₹1,250 crore. 

This Series G funding round was led by Singapore’s ABC Impact, the leading 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 Crores in December 2023. 

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 maximising 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”.

The latest Series G deal is subject to completion of standard conditions precedent. Aye Finance is a small-ticket lender in the MSME lending landscape, providing working capital loans to micro-enterprises.