Digital money lending startup, Aye Finance has raised USD 10 million in debt funding from Triple Jump BV and MicroVest Funds, through the issuance of non-convertible debentures. This is the 10th financing round for Aye Finance in the year 2018, the company informed in a statement. Since January, it has cumulatively raised ₹255 crore of debt.
The Gurugram-headquartered company, founded in 2014 claims to have disbursed ₹ 850 crore worth loans and catered to 60,000 micro enterprises since inception. With the recent funds raised, the company is gearing up to bolster its lending portfolio and offer affordable business loans to a larger number of microenterprises in India.
MD and founder of Aye Finance, Sanjay Sharma mentioned “At Aye, we use various data science methods which are layered over the traditional metrics of lending. These combined methods help us focus on the structural challenges of lending to micro businesses, who often do not maintain formal books of accounts while reducing the possibility of credit losses in our portfolio. This has allowed us to cater to the credit needs of this underserved albeit creditworthy sector. And the confidence global investors like Triple Jump and MicroVest instil in us by offering us funds for on-lending further strengthens our resolve to transform micro-enterprise lending in India.”
Freek Kortekaas, regional manager Asia at Triple Jump mentioned that The micro and small-sized businesses have outgrown microfinance and are often overlooked by banks, they are happy to support Aye Finance in its growth.
“MicroVest’s mission closely aligns with Aye Finance’s commitment to empowering entrepreneurs, and we’re excited to partner with them to achieve this goal,” said John Beckham, chief investment officer at MicroVest Capital Management LLC in the statement.
The debt financing follows Aye Finance raising $21.5 million in Series C equity investment from Capital G (formerly Google Capital), along with existing investors SAIF Partners and LGT. The debt was raised by issuing non-convertible debentures. Aye Finance is gearing up to grow its lending portfolio and offer affordable business loans to a larger number of micro-enterprises in India.