Aye Finance, which lends money to micro and small sector, has raised Rs 25 crore through a securitisation deal from investors, which includes Hinduja Leyland Finance and Intellegrow. The deal was facilitated by Vivriti Capital.
This is second such deal for the company. In July last year, the company had raised Rs10 crore by securitising a part of its portfolio. The newly raised capital will be used by the company to build its loan book.
Aye Finance has said that it is also in advanced talks with several investors to raise an additional Rs 150 crore in Series C funding round. In a statement, Sanjay Sharma, managing director, Aye Finance, said, “we at Aye have not only designed our processes and automation at minimum cost, but we have also partnered with various lenders, which allows us to offer economical loans, bringing this crucial sector of the economy under the inclusive fold of formal lending.”
Since its inception in the year 2014, the company claims to have disbursed more than Rs 500 crore to 40,000 small and medium businesses. It also claims to have around Rs 350 crore in assets under management (AUM).
The company was founded by former bankers Sanjay Sharma and Vikram Jetley in 2014. Till date, the company has raised Rs 101 crore from venture capital firms, and another Rs 500 crore from debt and equity funds.
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. 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.