New Delhi: Small business loan provider Aye Finance Wednesday said it has raised $10 million(₹ 68.7 crore) in debt funding from global impact investment managers Triple Jump BV and MicroVest Funds. The deal was executed by Northern Arc Capital (formerly IFMR Capital).
This is the 10th financing round for Aye Finance this year, the company said in a statement. Since January, it has cumulatively raised ₹ 255 crore of debt.
“These micro and small-sized businesses have outgrown microfinance and are often overlooked by banks. We are happy to support Aye Finance in its growth," said Freek Kortekaas, regional manager Asia at Triple Jump.
“MicroVest’s mission closely aligns with Aye Finance’s commitment to empowering entrepreneurs, and we’re excited to partner with them to achieve this goal," said John Beckham, chief investment officer at MicroVest Capital Management LLC in the statement.
The debt was raised by issuing non-convertible debentures. Aye Finance is gearing up to grow its lending portfolio and offer affordable business loans to a larger number of micro enterprises in India.
The debt financing follows Aye Finance raising $21.5 million in Series C equity investment from Capital G (formerly Google Capital), along with existing investors SAIF Partners and LGT.
The Gurugram-headquartered company claims to have disbursed ₹ 850 crore worth loans and catered to 60,000 micro enterprises since inception.
“At Aye we use various data science methods which are layered over the traditional metrics of lending. These combined methods help us focus on the structural challenges of lending to micro businesses… And the confidence global investors like Triple Jump and MicroVest instil in us by offering us funds for on lending further strengthens our resolve to transform micro enterprise lending in India," said Sanjay Sharma, managing director and founder at Aye Finance.