Aye Finance raises INR 75cr debt from Triple Jump and Northern Arc
By Leandra Monteiro
Aye Finance, an Indian MSME lending company, has announced an INR 75 crores debt raise from global impact investment manager, Triple Jump BV and Northern Arc, a diversified non-banking finance company (NBFC) focussed on under-served households and businesses. Aye will use these funds for on-lending.
The CapitalG backed lender was incepted in 2014 and since then has disbursed over INR 5000 crores to over three and a half lac micro-enterprises. Recently Aye had announced the opening of 100 new centres which took its geographical presence to 311 in 20 states. With this fresh infusion of funds, the lender will make credit a reality for an even larger population of the underserved segment of micro-enterprises.
Despite the disruption caused by the pandemic, Aye has continued to raise funds from leading impact investors that have backed the lender in its mission of improving financial inclusion. The company is backed by CapitalG (Alphabet Inc Growth Equity Fund), Elevation Capital, LGT, Falcon Edge Capital, A91 Partners and MAJ Invest, and over twenty investors that support it through the debt route.
Commenting on the latest fundraise, Sanjay Sharma, Managing Director, Aye Finance said, “We thank Triple Jump and Northern Arc for the latest round of funds. This fundraise underscores the trust the investor community has in our model and in our ability to achieve our mission of easing access for the grassroots businesses to affordable and customised credit solutions”
Jarri Jung, Director Financial Institutions at Triple Jump, said, “Triple Jump has funded Aye Finance since 2018, we are happy to further expand our relationship through this joint transaction with Northern Arc. Over the years, Aye Finance has made a tremendous impact for MSME’s in India that have difficulties obtaining funding. Triple Jump is proud to have partnered with Aye Finance and is looking forward to continuing to support the company in its mission”
Commenting on this fundraise, Bama Balakrishnan, COO, Northern Arc Capital, said, “Northern Arc Capital strongly believes that bridging the huge credit requirement of the MSME sector especially as they rebuild from the impact of the Covid-19 pandemic is essential to drive economic growth across the country. Aye Finance has played a pivotal role in funding MSMEs and ensuring last-mile delivery of financial services. We are pleased to support Aye Finance in this phase of growth, cementing a long and fruitful partnership.”
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