Gurugram-headquartered online lending startup Aye Finance has raised $4.6 Mn (INR 30 Cr) in debt funding led by Swiss impact investor BlueOrchard Finance Ltd. The development comes less than two months after that startup secured $3.8 Mn (INR 25 Cr) from three investors, including Hinduja Leyland Finance and IntelleGrow.
As per the media statement, the latest round of funding will enable Aye Finance to further diversify its lending portfolio, with the aim of reaching out to more MSMEs in India.
Commenting on the fundraise, Sanjay Sharma, Managing Director and Founder of Aye Finance, said “It is humbling to see the amount of trust BlueOrchard has shown in Aye Finance. While we are thankful for their timely support and encouragement through the investment of funds, it also inspires us to continue the work we are doing in creating a difference in the Indian economy by supporting the MSME sector.”
Aye Finance Growth Story: A Snapshot
Founded in 2014, Aye Finance is a new-age finance company that provides customer-centred financial services to the small and micro enterprises across India. As a Non-Banking Financial Company, the online lending company strives to make mortgage, hypothecation and term loan services accessible to the country’s underserved MSME sector. It was founded by Sanjay Sharma and Vikram Jetley.
It has a proprietary data-driven underwriting technique called “Cluster Based Credit Assessment”, which ensures robust credit selection in the absence of good financials or banking records and without prior credit bureau history.
The online lending startup’s customised appraisal techniques for each industry and cluster helps it serve customers outside the purview of traditional financing. Currently, Aye Finance boasts over 72 branches across 10 states, with a workforce of more than 1000 employees.