Aye Finance Private Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
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 prospective customer?
Aye Finance (Aye) is a non-deposit taking NBFC with a specific focus on micro and small enterprises in India. Aye finances micro enterprises in manufacturing and service clusters across 21 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 proceeds of this facility support the expansion of Aye’s loan portfolio in India. The loan is dedicated to micro entrepreneurs and aligns with FMO’s objective of reducing inequalities. Aye has presence in the states of Bihar, Jharkhand, Gujarat and Maharashtra which have a prevalence of women entrepreneurship. Consequently, this financing initiative not only facilitates Aye's overall loan expansion strategy but also empowers women-owned enterprises in these areas.
Why do we want to 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 NBFCs offer. This segment, often referred to as the 'missing middle', lacks access to the formal credit system. FMO is committed to bridge this gap by providing credit extension to this underserved segment in India. We aim to achieve this by backing innovative companies like Aye, which has demonstrated to serve this target segment effectively.
What is the Environmental and Social categorization rationale?
The project has been categorized as E&S Category C, in accordance with FMO’s Sustainability Policy. In case of NBFC investments, the E&S classification is typically medium to low because the exposure generally is limited to retail and micro-entrepreneurs. No exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 3/10/2022 | EUR 0.02 MLN |
| 3/15/2024 | INR 1250.00 MLN |
- Website customer/investment
- https://www.ayefin.com/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 4/15/2024
- Deadline for feedback
- 5/15/2024
- Total FMO financing
- USD 30.00 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