New Delhi, Jun 19 (KNN) Aye Finance, a prominent non-banking finance company focused on serving micro, small and medium enterprises (MSMEs) in India, has raised Rs 250 crore in debt financing from FMO, the Dutch entrepreneurial development bank.

The capital will be utilised to further Aye Finance's mission of promoting financial inclusion by extending loans to underserved MSMEs across the country.

The fundraising was conducted through the issuance of non-convertible debentures.

Krishan Gopal, Chief Financial Officer, Aye Finance, stated that the company's association with FMO dates back to 2019, and their collaborative efforts have been instrumental in making affordable credit accessible to the often-overlooked segment of micro-enterprises in India.

"Lack of access to timely financing remains a significant hurdle for millions of hard-working microbusiness owners, and we are laser-focused on bridging that gap across the country," Gopal said.

He added that this latest funding from FMO will be pivotal in allowing Aye Finance to rapidly scale its lending efforts and include grassroots businesses, which form the backbone of the Indian economy, in organized lending.

Juan Jose Dada Ortiz, Director of Financial Institutions, FMO, expressed the Dutch development bank's enthusiasm in supporting its long-term client Aye Finance once again as they expand their loan portfolio across India, targeting the ‘missing middle’ who would otherwise be locked out of the formal credit system of traditional banks.

For the fiscal year 2023-24, Aye Finance reported a net profit of Rs 161 crore, a significant increase from Rs 57 crore in the previous financial year.

The company's revenue also witnessed substantial growth, rising by 67 per cent to Rs 1,072 crore in 2023-24, compared to Rs 643 crore in the preceding year.

(KNN Bureau)