Aye Finance Private Limited
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Aye Finance (Aye) is a non-deposit taking NBFI with a specific focus on micro and small enterprises in India. Aye finances micro enterprises in manufacturing and service clusters across 18 Indian States. Using tech-based credit underwriting Aye is able to provide loans to customers who otherwise would be locked out of the financial system.
What is our funding objective?
The FMO loan supports the expansion of Aye’s loan portfolio in India. The loan is dedicated to micro entrepreneurs and therefore supports FMO’s objective of reducing inequalities. Aye has expanded to the States of Bihar, Jharkhand, Gujarat and Maharashtra which have a prevalence of women entrepreneurship. The FMO loan thus supports Aye’s loan expansion to women-owned enterprises and FMO also offers technical assistance targeted at increasing Aye’s reach into the women market.
Why do we fund this investment?
India has a high number of enterprises which fall between the (smaller) loan size ranges that microfinance companies offer and the (higher) loan sizes that traditional banks and NBFIs offer, i.e. the ‘missing middle’ who don’t have access to the formal credit system. FMO wants to support credit extension to this segment in India by supporting innovative companies such as Aye, which serve this target segment efficiently and at acceptable credit risk levels.
What is the Environmental and Social categorization rationale?
E&S category C. Aye does not lend to sectors on the exclusion list.
More investments
| Date | Total FMO financing |
|---|---|
| 3/10/2022 | EUR 0.02 MLN |
| 4/15/2024 | USD 30.00 MLN |
- Website customer/investment
- http://www.ayefin.com
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 7/16/2019
- Effective date
- 10/23/2019
- End date
- 3/15/2024
- Total FMO financing
- INR 1250.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C