Project detail - Aye Finance Private Limited

Aye Finance Private Limited

Status: Approved investment
Back to map

Why disclosure?

FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more

In case of questions

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 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 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
Effective date
5/28/2024
Total FMO financing
INR 2490.00 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