Indian micro-lender AYE Finance has secured a $3m credit line from public lender the State Bank of India.
The company operates a network of 22 branches around seven Indian states.
It provides working capital loans of between $732 and $36,600 to small and micro enterprises that are profitable closed out from traditional financial services.
The Gurgaon-based company claims to have served more than 250,000 borrowers to date.
AYE Finance co-founder and managing director Sanjay Sharma commented: “While the MSME sector continues to be under-served, we believe it holds a lot of promise for growth, development and job creation.
“These funds will allow us to reach out to micro and small enterprises and provide them with the much-required line of credit.”
The non-banking financial company says it will use the new capital to expand its reach to more small businesses not usual served by lenders.
AYE Finance previously picked up $10m in a Series B round led by Zurich-based LGT Impact Ventures and existing investors SAIF Partners and non-profit organisation Accion.
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