India’s Aye Finance gets $17.8m debt from Dutch development bank FMO

Photo: Mint

Small business lender Aye Finance Pvt. Ltd on Tuesday said it has raised  125 crore in debt from Dutch development bank FMO — its second such debt infusion in the last three months.

FMO said it will work closely with Aye Finance to expand services to women entrepreneurs in the country through a Gender Finance programme. This transaction, where Aye raised non-convertible debentures, was executed by Chennai-based Northern Arc Capital, also an existing investor in Aye Finance.

“While we have women as co-applicants for over 95% of our loans, we believe we can do more in enabling the women micro enterprises of India to bring about a more transformative impact on the economy,” said Sanjay Sharma, managing director of Aye.

Aye Finance generally lends 1-2 lakh to businesses with a turnover of 10-30 lakh a year. It has raised about $70 million in equity so far, including about $36 million in a Series D round from US-based Falcon Edge Capital, Alphabet’s investment arm Capital G, and venture capital firm SAIF Partners.

It last raised $10 million in debt from responsAbility Investments AG, a Swiss impact investor in August this year.

Aye has also managed to grow and keep a relative check on defaults in what has been a testing time for the non-banking financing industry, which has been bogged down by a severe liquidity crunch and has seen a number of high scale defaults at institutions such as Dewan Housing Finance Ltd. and Altico Capital among others.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.