British International Investment (BII), the UK’s development finance institution and impact investor, has extended funds to micro enterprises lender Aye Finance and affordable housing company Sewa Grih Rin (Sitara).

Aye Finance has entered into definitive agreements for Rs 310 crore in Series F funding led by BII. Waterfield Advisors’ fund of funds and Aye’s existing shareholder A91 Partners also participated in the round. The deal is subject to completion of standard conditions precedent. Aye Finance has so far raised Rs 1,000 crore of equity.

Separately, BII has committed Rs 120 crore of debt financing to Sitara, which will help it enhance its loan book, expand into new locations, and provide access to finance for home construction and home improvement.

Sitara provides loans of Rs 50,000 to Rs 30 lakh for house construction, extension, purchase, and renovation. The company operates through a network of 75 branches across nine states.