Indian small business lender Aye Finance raises $10mn debt from responsAbility

Aye Finance

Sanjay Sharma, managing director, Aye Finance

Small business lender Aye Finance has raised $10 million in debt from responsAbility Investments AG, a Swiss impact investor, according to media reports.

“We plan to use the funds raised for growth, to lend more and build a profitable loan book, and are seeing significant demand despite the liquidity crisis,” said Sanjay Sharma, managing director, Aye Finance.

Gurugram-based Aye Finance lends to micro and small businesses. It has so far raised $168.3 million of debt from global impact investment managers TripleJump BV and MicroVest Funds, as well as responsAbility and Northern Arc Capital, according to media reports.

responsAbility Investments AG is a private Swiss enterprise, founded in 2003 and headquartered in Zurich. Its core businesses are investments in microfinance companies which provide credit and other banking services to very small, small and medium-sized enterprises.

In the latest round, Aye has raised $5 million from responsAbility through the issue of non-convertible debentures, while rest through a securitization pool raised by responsAbility and arranged by JPMorgan.

Key investors in the transaction include the Overseas Private Investment Corp. (OPIC), a US government agency focusing on development finance and Alecta, a European pension fund.

Related Posts