Gurugram-based SME lending startup Aye Finance has raised ₹107 crores in debt funding from global impact investor BlueOrchard, reported Inc42.
The funds raised will be used to expand loan book, grow the lending portfolio, and offer affordable and personalised credit lending solutions to SMEs in India.
The latest funding comes months after Aye Finance raised $17.4 million in debt funding from FMO in November 2019.
Aye Finance was founded by an IIM Bangalore alumnus Sanjay Sharma, along with Vikram Jetley in 2014. The fintech startup provides a platform for small businesses to secure loans at affordable rates, that are locked out of financial institutions. It harnesses technology to create a seamless system to access the creditworthiness of the borrower by using data analytics.
So far, the startup claims to have disbursed ₹2,700 crores worth credit to over 196,000 small businesses across the country. Aye Finance has expanded its reach to 173 cities across 18 states in the country.
Till date, Aye Finance has raised over $159 million across all funding rounds from investors like DCB Bank, CapitalG, MicroVest, Triple Jump, Aspada and Falcon Edge Capital, among others.
Other SME lending startups competing with Aye Finance in the space include ShubhLoans, Capital Float, InCred Finance, Vayana Network and OfBusiness, among many others.