Aye Finance: Empowering MSMEs Through Financial Inclusion Efforts
June 19, 2024, 3:36 am
Location: India, Haryana, Gurugram
Employees: 1001-5000
Founded date: 2013
Total raised: $293.4M
Location: Netherlands, South Holland, The Hague
Employees: 501-1000
Founded date: 1970
Aye Finance, a leading non-banking finance company, recently secured a substantial ₹250 crore in debt funding from FMO, the Dutch entrepreneurial development bank. This significant funding injection is poised to play a pivotal role in bolstering Aye Finance's ongoing mission of enhancing financial inclusion by extending much-needed loans to underserved micro, small, and medium enterprises (MSMEs) across the vast landscape of India.
The collaboration between Aye Finance and FMO dates back to 2019, and through their combined efforts, they have been instrumental in making affordable credit a tangible reality for the often-overlooked segment of microbusiness owners in India. The latest funding infusion from FMO is anticipated to serve as a catalyst for Aye Finance to rapidly expand its lending initiatives and embrace grassroots businesses, which serve as the backbone of the Indian economy, into the realm of organized lending.
Krishan Gopal, the Chief Financial Officer of Aye Finance, expressed his enthusiasm regarding this latest development, emphasizing the company's unwavering commitment to bridging the financial gap that persists for millions of hard-working microbusiness owners throughout the country. Gopal highlighted the critical role that timely financing plays in the success and sustainability of these enterprises, underscoring Aye Finance's laser-focused dedication to addressing this pressing issue on a national scale.
Juan Jose Dada Ortiz, the Director of Financial Institutions at FMO, echoed Gopal's sentiments, expressing FMO's delight in supporting their long-term client, Aye Finance, as they expand their loan portfolio and target the crucial missing middle segment that would otherwise be excluded from the formal credit system of traditional banks. This collaborative effort between Aye Finance and FMO signifies a shared commitment to driving positive change and fostering economic growth within the MSME sector.
In the fiscal year 2023-24, Aye Finance reported a commendable net profit of ₹161 crore, a substantial increase from the previous year's figure of ₹57 crore. Furthermore, the company's revenue witnessed a remarkable 67% growth, reaching ₹1,072 crore in 2023-24 compared to ₹643 crore in the preceding year. These impressive financial indicators underscore Aye Finance's robust performance and unwavering dedication to empowering MSMEs through accessible and affordable financial solutions.
As Aye Finance continues to make significant strides in the realm of MSME lending, the company's latest debt funding from FMO serves as a testament to their steadfast commitment to driving financial inclusion and economic empowerment for microbusiness owners across India. By leveraging this funding to expand their lending initiatives and include grassroots businesses in the formal credit ecosystem, Aye Finance is poised to play a transformative role in fostering sustainable growth and prosperity within the MSME sector.
The collaboration between Aye Finance and FMO dates back to 2019, and through their combined efforts, they have been instrumental in making affordable credit a tangible reality for the often-overlooked segment of microbusiness owners in India. The latest funding infusion from FMO is anticipated to serve as a catalyst for Aye Finance to rapidly expand its lending initiatives and embrace grassroots businesses, which serve as the backbone of the Indian economy, into the realm of organized lending.
Krishan Gopal, the Chief Financial Officer of Aye Finance, expressed his enthusiasm regarding this latest development, emphasizing the company's unwavering commitment to bridging the financial gap that persists for millions of hard-working microbusiness owners throughout the country. Gopal highlighted the critical role that timely financing plays in the success and sustainability of these enterprises, underscoring Aye Finance's laser-focused dedication to addressing this pressing issue on a national scale.
Juan Jose Dada Ortiz, the Director of Financial Institutions at FMO, echoed Gopal's sentiments, expressing FMO's delight in supporting their long-term client, Aye Finance, as they expand their loan portfolio and target the crucial missing middle segment that would otherwise be excluded from the formal credit system of traditional banks. This collaborative effort between Aye Finance and FMO signifies a shared commitment to driving positive change and fostering economic growth within the MSME sector.
In the fiscal year 2023-24, Aye Finance reported a commendable net profit of ₹161 crore, a substantial increase from the previous year's figure of ₹57 crore. Furthermore, the company's revenue witnessed a remarkable 67% growth, reaching ₹1,072 crore in 2023-24 compared to ₹643 crore in the preceding year. These impressive financial indicators underscore Aye Finance's robust performance and unwavering dedication to empowering MSMEs through accessible and affordable financial solutions.
As Aye Finance continues to make significant strides in the realm of MSME lending, the company's latest debt funding from FMO serves as a testament to their steadfast commitment to driving financial inclusion and economic empowerment for microbusiness owners across India. By leveraging this funding to expand their lending initiatives and include grassroots businesses in the formal credit ecosystem, Aye Finance is poised to play a transformative role in fostering sustainable growth and prosperity within the MSME sector.