Aye Finance, a Fintech company providing loan to micro, small and medium enterprises has raised $3.8 Mn (INR 25 Cr) from three investors including including Hinduja Leyland Finance and IntelleGrow. The investment took place through a securitisation deal, facilitated by Vivriti Capital.
Aye Finance, which was founded by bankers Sanjay Sharma and Vikram Jetley in 2014, have previously secured $6.28 million from IFMR which happened less than a month ago. It also bagged $1.5 Mn (INR 10 Cr) in a similar kind of securitisation deal in July 2017.
Speaking of the current funding and two of the investors Hinduja Leyland Finance and IntelleGrow, Sanjay Sharma, Co-Founder and Managing Director of Aye Finance said,
“I believe if India has to rise with a social balance, the micro businesses at the bottom of the pyramid need to be enabled and empowered. But lending to this segment poses innumerable challenges. The loan requirements of these businesses range between $774.6 and $7746.7 (INR 50,000 and INR 5 Lakh), which makes servicing these small ticket loans an expensive proposition.
We at Aye have not only designed our processes and automation at minimum cost but we have also partnered with various lenders, which allows us to offer economical loans, bringing this crucial sector of the economy under the inclusive fold of formal lending.”
The company is currently running at an Assets Under Management of Rs 350 crore and is targeting total loan disbursal’s of Rs 600 crore by the end of the current financial year. the company has established itself as one of the top lending companies in the digital world.
Aye finance has over 72 branches operating in 10 states across India which provides mortgage, hypothecation and term loan services to MSME’s. The non banking company has disbursed more than Rs500 crore to 40,000 small and medium businesses.
Before this funding, the company has also raised fund from three venture capital funds including Accion International, SAIF Partners and LGT Impact Ventures. In May 2017, it raised $8 Mn from global impact investment manager Blue Orchard. The funding was raised through non-convertible debentures with a maturity period of five years. It also raised $3 million as a part of it Series A round funding in December 2015.
Other than Aye Finance, the other credit providing companies in India include Quikrupee, SMEcorner, LendingKart, KredX, Veritas Finance, Quikrrupee and many more.