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Aye Finance Bolsters Growth with $30M Funding from FMO

Aye Finance Bolsters Growth with $30M Funding from FMO

22nd June 2024- Aye Finance has secured $30 million (approximately ₹250 crore) in debt funding from FMO, The Dutch Entrepreneurial Development Bank, marking a significant step forward in its mission to promote financial inclusion among underserved micro, small, and medium enterprises (MSMEs) across India.

Sanjay Sharma, Co-Founder of Aye Finance, shared in an interview with CNBC-TV18 that the company currently manages Assets Under Management (AUM) worth ₹4,500 crore and aims to increase this to ₹6,500 crore by year-end. Sharma indicated plans for further debt raising throughout the year to support growth initiatives.

The recent funding from FMO will fuel Aye Finance’s expansion efforts. “The $30 million raised from FMO, along with an earlier $37 million equity infusion, will directly contribute to our growth,” Sharma affirmed. He highlighted the company’s robust financial performance in the past year, citing a 67% revenue increase to ₹1,070 crore and a profit of ₹161 crore, driven by enhanced automation and improved unit economics.

Established a decade ago, Aye Finance has served over 9 lakh customers and disbursed nearly ₹10,000 crore. Operating in 22 states, the company processes about 40,000 loans monthly, catering to the substantial demand from micro-enterprises crucial for non-agricultural employment in India.

Looking ahead, Sharma anticipates sustained growth over the next five to ten years, buoyed by strong market demand.

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