Aye Finance Closes INR 212 Cr Loan Securitisation Deal With Goldman Sachs

Lending tech startup Aye Finance has marked close of INR 212 Cr (over $25 Mn) business loan securitisation deal with Goldman Sachs (India) Finance Pvt Ltd.

The deal will help Aye Finance to fuel expansion of its lending operations to micro enterprises across the country.

The company also said in a statement that the securitization deal is backed by a portfolio of its business loans to micro enterprises structured via pass-through certificates and will further strengthen the asset and liability management position of Aye Finance. 

Founded in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance offers affordable business loans to small businesses across the country. It uses cluster-based credit assessment with AI algorithms to assess risk in the absence of traditional business documents.

“This transaction underscores our robust business model catering to the credit needs of Micro Enterprises, and our innovative approach to lending to drive significant socioeconomic progress,” Krishan Gopal, chief financial officer at Aye Finance said.

This deal comes in parallel to another partnership of lending company Lendingkart and Tata Group’s financial services arm Tata Capital Limited to offer unsecured business loans to micro, small and medium enterprises (MSMEs), earlier today.

Lendingkart said in a statement that this partnership with Tata Capital is aimed at enhancing lending access for MSMEs across the country through its SaaS platform 2gthr.

Gopal also claimed that Aye Finance has emerged as a category leader transforming micro enterprise lending in India, and provided credit lines of over INR 10,000 Cr to 9 Lakh common businesses, and added that this deal with Goldman Sachs’ financial arm in India would further accelerate the company’s growth trajectory.

The Gurugram-based company raised debt funding of INR 250 Cr (around $30 Mn) from Dutch entrepreneurial development bank FMO, in June, with an aim to disburse loans to underserved micro, small and medium enterprises (MSMEs) across India.

Prior to that, Aye Finance also raised INR 137 Cr in a debt funding round from German impact investment and portfolio management firm Invest in Visions, in March.

The company told Inc42 that the revenue jumped 51.6% to INR 350.64 Cr in the first quarter of FY25, up from INR 231.22 Cr, a year ago.

Also, the company saw its quarterly profit rise 53% to INR 60.94 Cr in the financial quarter ended June, compared to INR 39.83, from the previous financial year FY24.