Aye Finance secured INR 310 crore in its Series F funding round, with British International Investment (BII) from the UK leading the investment. The round also saw participation from The Waterfield Fund of Funds and A91 Partners, existing shareholders of Aye Finance. This fresh equity funding follows the startup's previous Series E round in June 2020, where it raised INR 210 crore ($27 million based on previous exchange rates). Avendus Capital served as the sole financial advisor to Aye Finance for this particular transaction.

Established in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance specializes in providing cost-effective business loans to microenterprises within the country. The company employs AI algorithms for cluster-based credit assessment to evaluate risk when traditional business documentation is unavailable. Sharma, Aye Finance's MD and CEO, emphasized the necessity for equity to fuel the company's sustained growth over the past two years. The primary allocation of the funds aims to strengthen the portfolio and lending book, with a fraction earmarked for the expansion of the branch network.

Sharma highlighted Aye Finance's current presence of 395 branches nationwide, announcing plans to add an additional 80 branches in the fiscal year 2024. This funding round follows Aye Finance's successful debt funding initiatives, securing over INR 550 crore in the final quarter of 2022. Notable contributors to this debt funding included BlueOrchard (INR 87 crore), Triple Jump BV and Northern Arc (INR 75 crore), Symbiotics (INR 65 crore), and responsAbility Investments (INR 81.2 crore).