Rs. 125 crores have been raised in debt by Aye Finance from a Dutch entrepreneurial development bank-FMO, by the issuance of Non-convertible Debentures.
Aye is aiming to strengthen its lending portfolio and expand its business in providing credit particularly to women-owned micro-enterprises in India.
FMO has not only provided the debt but also it would help Aye in expanding their services to female entrepreneurs in India through a Gender Finance Program.
This transaction got syndicated and executed by a leading debt investor and platform in the credit segment, Chennai-based Northern Arc Capital.
According to a statement made by Mr. Sanjay Sharma, MD and Founder of Aye Finance, that over 95 percent of their loans have women as co-applicants and somewhere they believe that they can work better on pushing the women micro-enterprises of India in bringing a transformation in the Indian economy. Whereas, they have expanded their network in states where women entrepreneurship has its presence such as Gujarat, Bihar, Jharkhand and Maharashtra, FMO will be supporting them to enrich its services in these locations and well as 14 other states where their services already exist.
Linda Broekhuizen, CIO, FMO reportedly said that they are proud to have Aye Finance as its client since the services by Aye will be provided to micro entrepreneurs of which half will be the female entrepreneurs. This partnership is more importantly a contribution to SDG5, gender equality and SDG10, reduced inequalities.