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Aye Finance Raises $10M from Triple Jump and MicroVest Fund to Bolster Its Lending Portfolio

Aye Finance has disbursed over Rs 800 crores to over 65,000 customers and has expanded its reach to over 100 cities in 11 Indian States.

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CapitalG backed fintech lender, Aye Finance, has raised $10 million in debt funding from leading global impact investment managers- Triple Jump BV and MicroVest Funds, through the issuance of Non-Convertible Debentures. With the recent funds raised, Aye is gearing up to bolster its lending portfolio and offer affordable business loans to a larger number of microenterprises in India. This transaction was syndicated and executed by Northern Arc Capital.

Aye Finance has disbursed over Rs 800 crores to over 65,000 customers and has expanded its reach to over 100 cities in 11 Indian States. It opened its 102nd Branch in Hyderabad last week to offer finance options to the credit starved micro enterprises in the city. .  

Sanjay Sharma, MD and Founder of Aye Finance said, “At Aye we use various data science methods which are layered over the traditional metrics of lending. These combined methods help us focus on the structural challenges of lending to micro businesses, who often do not maintain formal books of accounts, while reducing the possibility of credit losses in our portfolio. This has allowed us to cater to the credit needs of this underserved albeit creditworthy sector. And the confidence global investors like Triple Jump and MicroVest instil in us by offering us funds for onlending further strengthens our resolve to transform micro enterprise lending in India.”  

Triple Jump is an impact-focused investment manager that provides meaningful and responsible investment opportunities in developing countries “Aye Finance has found an innovative approach to serve the so-called missing middle. These micro and small sized businesses have outgrown microfinance and are often overlooked by banks. We are happy to support Aye Finance in its growth,” said Freek Kortekaas, Regional Manager Asia, Triple Jump.

“This investment in Aye Finance also allows MicroVest to diversify its exposure in India’s rapidly evolving financial sector,” added MicroVest’s Chief Investment Officer, John Beckham. 

Last month, Aye Finance became the first finance company to receive equity investment from CapitalG (formerly Google Capital). It raised $21.5 million in Series C equity from the venture capital fund owned by Alphabet Inc. as well as its existing investors SAIF Partners and LGT.

Since its inception in 2014 by Sanjay Sharma and Vikram Jetley, Gurgaon-headquartered Aye Finance has been successfully disrupting the status quo in MSME lending while setting new standards in building a quality loans portfolio in an inclusive manner.

In the SME lending segment, Aye Finance competes with the likes of players such as Capital Float, Lendingkart, Veritas Finance, Quikrupee, SMEcorner, Innoviti, FlexiLoans, Biz2credit, and KredX, among others.

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