Aye Finance raises Rs 87 crore from Swiss impact investor BlueOrchard

Fintech lender Aye Finance has raised Rs 87 crore in debt funding from Swiss impact investor BlueOrchard and it will use the proceeds to expand finance to micro-enterprises in the country. The company has targeted to raise Rs 1,500 crore via debt this year, of which Rs 700 crore has been raised so far.

Aye said it will use the fresh capital to extend affordable and customised credit solutions to the base of business pyramid of India and power its growth into new-age India.

The fintech lender, since its inception in 2014, has provided Rs 5,500 crore worth of credit to over 4,50,000 grassroots businesses. It has an extensive branch network in 311 locations.

Aye Finance is backed by equity investors -- Capital G (erstwhile Google Capital), Elevation Capital, Falcon Edge, A91 Partners, LGT and MAJ Invest.

Founded in 2001 by the initiative of the UN, BlueOrchard is the world's first commercial manager of microfinance debt investments. It offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors.

"Our innovative solutions and process automation bring unexpected economies to our business. BlueOrchard has been partnering with us in our mission to create an inclusive India since 2017," Sanjay Sharma, MD and Founder of Aye Finance, said.

He said the company is in the sweet spot of providing small-ticket customised credit solutions to over 60 million micro-enterprises that have been overlooked by traditional lending channels.

Pranav Murari, Senior Investment Officer, Asia, at BlueOrchard, said the debt funding to Aye will further strengthen their partnership with Aye Finance.

Aye is serving a client segment that has been largely underserved and BlueOrchard looks forward to supporting their growth and herby supporting the MSMEs sector in India, he added.

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