Aye Finance, a lending startup, announced on Thursday that it has raised $10 million from its existing Swiss-based investor responsAbility Investments AG through external commercial borrowings (ECBs).

The Zurich-based responsAbility, an asset manager for impact investments in emerging economies, has backed Aye since 2017, and this is the fintech lender’s fifth debt investment.

According to a press release, Aye will use the additional funds to provide business loans to the excluded microenterprise sector in order to support their growth and enable their inclusion into the formal economy.

Aye, which was founded in 2014, provides business loans to small and micro enterprises throughout India, utilising artificial intelligence (AI) and machine learning (ML) solutions in the majority of its critical business processes.

Even in the absence of traditional business documentation, the lender claims to use its proprietary cluster-based credit assessment methodology combined with AI algorithms for risk selection.

Aye appears to have been on a fundraising binge in recent months. The company raised about Rs 87 crore (about $10.7 million) in debt from Swiss impact investor BlueOrchard earlier this month.

The company has raised Rs 550 crore in debt in the last three months, with Rs 65 crore coming from Symbiotics, a market access platform for impact investing.

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