Fintech startup Aye Finance ₹68.7 crores in debt financing

Fintech startup Aye Finance ₹68.7 crores in debt financing
Fintech startup Aye Finance ₹68.7 crores in debt financing
bitcoin trading

Gurugram-based Aye Finance has raised ₹68.7 crores ($10 million) in debt financing from global impact investment managers Triple Jump BV and MicroVest Funds by issuing non-convertible debentures. This latest debt financing round is the 10th for the startup since its launch in 2014. This transaction was executed by Northern Arc Capital (formerly IFMR Capital).

The fresh funds will be used to expand its lending portfolio by offering affordable business loans to more microenterprises in the country.

Aye Finance focuses on providing financial services to micro and small business in the country that do not have access to capital for growth. It was launched by Sanjay Sharma and Vikram Jetley. It has disbursed over 800 crores in loans to more than 65,000 customers with an outreach in over 100 cities covering 11 states in the country.

Vikram Jetley, Executive Director and Founder of Aye Finance said earlier, “Setting up branches in metros, tier 1 and beyond cities has helped us connect with the bottom of the pyramid businesses to better understand their distinct challenges and has allowed us to offer them credit solutions which best match their needs, bringing this “missing middle” into the ambit of formal lending.”

Aye Finance became the first finance company to receive an equity investment from CapitalG, when it raised $21.5 million in series C funding led by CapitalG last month, along with participation from existing investors SAIF Partners and LGT.

As per the latest report by Statista, a research company, total transaction value in the alternative lending segment amounts to $241 Mn in 2018. This total transaction value is expected to grow annually at the rate of 53.3%, amounting to a total value of $1.3 billion by 2022.

With an unprecedented expected growth rate, there is an opportunity for Aye Finance to serve the underserved and establish itself as a leading lender in the country.

Other Indian startups in the lending space giving competition to Aye Finance include Veritas FinanceLendingkart, Capital Float, Quikrupee, SMEcorner, Innoviti, Biz2credit, FlexiLoans, and KredX among many others.

LEAVE A REPLY

Please enter your comment!
Please enter your name here