Aye Finance, a non-banking financial company-microfinance institution (NBFC-MFI) in India, recently issued USD 10 million in non-convertible debentures in undisclosed portions to two microfinance fund management firms, Netherlands-based Triple Jump BV and US-based MicroVest Funds. Aye intends to use the proceeds to expand its small and medium-sized enterprise (SME) loan portfolio. Sanjay Sharma, the managing director and founder of Aye, reportedly said, “the confidence global investors like Triple Jump and MicroVest instil in us by offering us funds for on-lending further strengthens our resolve to transform micro enterprise lending in India.”
Aye also participated in the following transactions during 2018: (1) an equity investment of USD 22 million from Hong Kong-based Softbank Asia Infrastructure Fund Partners, US-based CapitalG and the Liechtenstein Global Trust Group; (2) a debt investment of INR 400 million (USD 6.3 million) from India-based Northern Arc Capital; (3) a loan of INR 300 million (USD 4.6 million) from Swiss investor BlueOrchard Finance and; (4) a debt investment of INR 250 million (USD 3.9 million) from the Indian investment firms IntelleGrow and Hinduja Leyland Finance
Established in 2014, Aye Finance is a non-deposit taking microlender to Indian SMEs in the agricultural, manufacturing, services and trading sectors. Since its inception, Aye Finance has disbursed INR 8.5 billion (USD 123 million) in microloans to 60,000 SMEs in India.
With the goal of helping microfinance institutions (MFIs) grow through the provision of capital and advisory services, Triple Jump was founded in 2006 by three Dutch organizations: the Not-One-The-Same (NOTS) Foundation; Oxfam Novib, an international cooperation and development group; and Algemene Spaarbank voor Nederland (ASN) Bank, a “sustainability-driven” institution. Triple Jump manages five microfinance investment funds that invest debt and equity in enterprises operating in the agricultural, housing, financial services and renewable-energy sectors. As of December 2017, it reported assets under management of EUR 758 million (USD 908 million) invested in 165 enterprises.
Launched in 2004, MicroVest is a firm that invests in the equity and debt of microfinance institutions (MFIs) and SME lenders in emerging markets. MicroVest is headquartered in Washington, DC, and was founded by three nonprofit organizations: the US-based Cooperative for Assistance and Relief Everywhere (CARE) International, the US-based Seed Capital Development Fund Limited and Canada’s Mennonite Economic Development Associates. As of December 2017, it reported USD 385 million in assets under management, deployed to 80 companies in 37 countries.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
LiveMint article
https://www.livemint.com/Companies/59FHIdWXDhkzyMAsZFnH2H/Aye-Finance-raises-10-million-debt-from-Triple-Jump-MicroV.html
Aye Finance background
http://www.ayefin.com/message-from-md-2/#ourstorypage
Aye Finance Crunchbase profile
https://www.crunchbase.com/organization/aye-finance#section-funding-rounds
Triple Jump background
https://triplejump.eu/about-us/investment-pillars/
Triple Jump annual report
https://triplejump.eu/wp-content/uploads/2018/07/Triple-Jump-Annual-Report-2017.pdf
MicroVest background
https://microvestfund.com/about-us/
MicroVest social impact report
https://microvestfund.com/wp-content/uploads/2018/07/MicroVest-Social-Impact-Report-2018-Final.pdf
MicroCapital Brief; June 23, 2011; Spurned by Commercial Banks, Indian Microfinance Institutions (MFIs) Raise Funds from Social Investors IFC, ACCION, MicroVest, ShoreCap, Aavishkaar, BlueOrchard
https://www.microcapital.org/microcapital-brief-spurned-by-commercial-banks-indian-microfinance-institutions-mfis-raise-funds-from-social-investors-ifc-accion-microvest-shorecap-aavishkaar-blueorchard/
MicroCapital Brief; October 21, 2013; Triple Jump Innovation Fund Attracts $22m to Promote Financial Access in Emerging Markets
https://www.microcapital.org/microcapital-brief-triple-jump-innovation-fund-attracts-22m-to-promote-financial-access-in-emerging-markets/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
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