British International Investment

Aye Finance Pvt Ltd

South AsiaFinancial services

Aye is a tech-enabled non-banking finance entity that provides unsecured credit to micro enterprises with an average loan size of USD 1,500 in India. Headquartered in Delhi, Aye operates in 21 states and has over 395 branches across the country.

Our investment

Description of the investment.

By investing in Aye Finance, we aim to improve access to credit for micro, small and medium enterprises (MSMEs), allowing them to scale their business and increase incomes.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.



Improved economic opportunities by increasing access to credit, allowing MSMEs to increase participation in the economy, scale their business and grow their household income (SDG 8.10).



Economic enabler: By being able to access loans, sometimes for the first-time, MSMEs will be able to manage their liquidity and meet their growth needs. In India, it is estimated that only 11 per cent of MSMEs have access to formal credit. Liquidity management and investment is critical to maintaining and growing operations, and evidence shows that smaller businesses benefit from flexible terms and smaller loan amounts to do this. Aye Finance’s approach to underwriting uses a range of data sources to identify borrowers, assess their credit worthiness, and provide them with an unsecured loan they would not have had access to through traditional lenders. This enables MSMEs to grow, ultimately providing more stable and increased incomes.


Stakeholder Geography Characteristics
Customers (i.e. MSME owners) and their employees


Aye Finance borrowers operate in trading, livestock rearing, manufacturing, services. Majority of borrowers are micro enterprises and do not keep business documents or file taxes. 12 per cent of borrowers are female applicants.

How much?

Scale Depth/Duration

Aye Finance has a customer base of 238,000 customers and loan book of INR 27.2 billion assets under management.

  • Depth: Analysis of Aye Finance’s borrowers showed that 89 per cent have no other sources of credit. More than 80 per cent say they are satisfied with improvements in their business after getting a loan from Aye – 43 per cent feel less stressed, 16 per cent have increased employees and 47 per cent have increased wages for their employees. Aye Finance also offers non-financial guidance and support.

  • Duration: Aye Finance loans range from 6 to 30 months for new clients and up to 42 months for repeat customers. 68 per cent of the portfolio tenor is 24 to 35 months. 25 per cent of loan disbursements are to repeat clients.



Financial additionality: While there’s presence of a few commercial investors, capital is not offered in sufficient quantity.


Execution Risk

Challenges in growing the business will affect scale of impact.

Unexpected Impact Risk

Given the profile of the client base, including many new and low-income, this could present client protection risks.

Alignment Risk

Diversifying away from the low-income segment.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.


Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

This transaction is classified medium high-risk owing to unsecured credit (93% of the portfolio) to micro enterprises. We agreed on an ESAP that will help Aye finance integrate E&S risks and institutionalise an ESMS.

Environmental and social risk


Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    First published

    When the investment was first published on the website database.

    March 2024
    Last updated

    When the last quarterly update of the website database occurred.

    June 2024
    Project number

    An identifier number shared by investments in the same project.


    The current status of the investment (green flag for active and red flag for exited).


    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    South Asia

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.


    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    Financial services

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Start date :
    December 2023
    Amount :
    Currency of investment :

    The company or investment fund’s place of incorporation.


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