Gurugram-based non-banking financial company (NBFC) Aye Finance has recently announced securing €15 million ($16.2 million) in debt funding from German impact investor Invest in Vision’s private funds, including IIV Mikrofinanzfonds.
This funding marks a significant milestone for Aye Finance, further fueling its mission to support underserved medium, small, and micro enterprises (MSMEs) in India.
Supporting Partnerships:
Agents For Impact (AFI), a sustainability connector for investors and social impact organizations, played a pivotal role in facilitating the execution support for this funding.
This collaboration underscores the collective effort to drive positive change by channeling resources towards impactful initiatives.
Utilization and Impact:
The newly acquired funds will be instrumental in expanding Aye Finance’s on-lending operations, enabling the company to extend financial support to a larger population of micro-enterprises across India.
Krishan Gopal, CFO of Aye Finance, emphasizes the significance of this funding in catering to the diverse financial needs of MSMEs and fostering their growth.
Financial Milestones:
Aye Finance’s commitment to empowering grassroots businesses is evident in its impressive track record. As of February 2024, the company has disbursed over Rs 10,000 crore in loans to various enterprises, demonstrating its unwavering dedication to driving economic prosperity at the grassroots level.
With an active client base exceeding 4.5 lakh micro-enterprises and assets under management (AUM) surpassing Rs 4,000 crore, Aye Finance continues to make a tangible impact on India’s entrepreneurial landscape.
Investor Perspective:
Camellia Genova, Senior Portfolio Manager at Invest in Visions, lauds Aye Finance’s mission to provide socially responsible funding to MSMEs, acknowledging the critical role such enterprises play in driving economic growth and employment generation in India.
Genova’s sentiments reflect the investor community’s growing recognition of the immense potential within India’s MSME sector and the importance of fostering inclusive financial ecosystems.
Visionary Approach:
Invest in Visions GmbH, founded in 2006 by Edda Schröder, embodies a visionary approach to impact investing. By offering institutional and private investors access to impact investments that prioritize both social and financial returns,
Invest in Visions contributes to building a more equitable and sustainable society. The organization’s commitment to creating positive societal and environmental outcomes aligns seamlessly with Aye Finance’s mission, underscoring the synergies between impactful investors and purpose-driven enterprises.
Conclusion:
Aye Finance’s successful securing of €15 million in debt funding from German impact investor Invest in Vision underscores the growing confidence in India’s MSME sector and its potential for driving inclusive growth.
With strategic partnerships and a steadfast commitment to its mission, Aye Finance continues to pave the way for meaningful change, empowering micro-enterprises and fostering economic resilience across the nation.
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