Aye Finance raises INR 75cr debt from Triple Jump and Northern Arc
By Leandra Monteiro
- Yes Finance
- Digital Loan
Aye Finance, an Indian MSME lending business, announced a debt increase of INR 75 crore with global impact investment manager, Triple Jump BV and Northern Arc, a diversified non-bank financial company (NBFC) focused on underserved households and businesses. Aye will use these funds to loan them out.
The CapitalG-backed lender was established in 2014 and has since disbursed over INR 5,000 crore to over three and a half lac micro-enterprises. Recently Aye announced the opening of 100 new centers which brought its geographical presence to 311 in 20 states. With this new injection 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 major impact investors who have supported the lender in its mission to improve 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 more than twenty investors who back it through debt.
Commenting on the latest fundraiser, Sanjay Sharma, Managing Director, Aye Finance said, “We thank Triple Jump and Northern Arc for the latest round of funding. This fundraising underlines the confidence that the investment community places in our model and in our ability to achieve our mission of facilitating access for businesses in the field to affordable and personalized credit solutions.
Jarri Jung, Director of Financial Institutions at Triple Jump, said: “Triple Jump has funded Aye Finance since 2018, we are pleased to further expand our relationship through this joint transaction with Northern Arc. Over the years, Aye Finance has had a tremendous impact on MSMEs in India who find it difficult to obtain finance. Triple Jump is proud to have partnered with Aye Finance and looks forward to continuing to support the company in its mission.”
Commenting on this fundraiser, Bama Balakrishnan, COO, Capital of the Northern Arc, said: “Northern Arc Capital strongly believes that filling the MSME sector’s huge need for credit, particularly as they rebuild from the impact of the Covid-19 pandemic, is critical to driving economic growth. Across the country. Aye Finance has played a pivotal role in financing MSMEs and providing last mile financial services. We are happy to accompany Aye Finance in this phase of growth, cementing a long and fruitful partnership.
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