Aye Finance, a startup that lends money to micro and small sector, has raised ₹32 crore debt funding from Geneva-based finance institution Symbiotics Group.
With this fundraise, the total amount raised by the startup in this financial year stands at ₹200 crore. As per the company’s executives, it is now looking forward to disbursements of about ₹550 crore by the end of this fiscal year.
The money raised in this round will be used to cater to new industry verticals within the small and micro sector as well as expand to other areas in the country.
The operations of the Gurgaon-based startup currently span 10 northern, central and southern states in the country. It services more than 50 clusters through its 72 branches.
Managing director Sanjay Sharma said that the fundraising will help the company lend to a larger number of businesses in tier-II cities and beyond. He added, “we are looking at expanding our branch network across southern and central India, taking the total number of branches to 100 by the end of this fiscal.”
Aye Finance follows an industry-cluster approach and risk assessment through alternate data such as psychometric evaluation and behavioural screening for the purpose of lending.
Founded by former bankers Sanjay Sharma and Vikram Jetley in 2014, Aye Finance claims to have over 18,000 customers. Earlier this year, the Gurgaon-based startup had raised Rs 50 crore funding from Blue Orchid.
Earlier this year, in July, the company had raised ₹10 crore by selling a part of its SME loan portfolio under a securitisation deal to Mahindra and Mahindra Financial Services.