Aye Finance, the innovative lender to the micro and small sector, has successfully raised INR 32 Cr in Debt Fund from Symbiotics Group, the Geneva based Development Finance Institution. The funds will be utilized by the NBFC to empower India’s burgeoning MSME segment by solving their biggest obstacle of affordable finance.
In June this year, Aye Finance had announced its plans of raising 300 Cr in debt fund by the end of the financial year 2017-18. The latest infusion of funds takes the total amount of debt raised by Aye Finance to appx 200 Cr in the current financial year, further propelling the NBFC on its projected growth curve.
Aye is equity-funded by three reputed funders – global non-profit and financial inclusion pioneer Accion, SAIF Partners and LGT Impact. It has over a dozen debt providers, including India’s largest PSU Bank, SBI. Headquartered in Gurgaon, Aye has expanded its reach to 10 northern, central and southern Indian states and services over 50 clusters through its 72 Branches.
Commenting on the latest development, Sanjay Sharma, MD and Founder of Aye Finance, said, “We thank Symbiotic for showing confidence in our mission of enabling the inclusion of micro and small businesses into the mainstream of our Economy. The fundraising is in accordance with the expansion drive that is counterbalanced by a high credit quality of the portfolio. This will assist us significantly in lending to a larger number of businesses in the tier II and beyond cities.”
By adopting the innovative industry-cluster approach, along with risk assessment through alternate data like psychometric evaluation and behavioural screening, Aye Finance continues to look for innovative ways to eliminate the problem of asymmetrical or complete lack of business documentation. By leveraging cloud and mobile technology along with processes focused on data analytics, Aye is able to bring down the cost of delivery to such a low point that even small loans to the businesses at the bottom of the pyramid have become affordable.
Aye’s leadership is rallied around the vision to become an admired financial institution with a dominating position in micro and small enterprise lending. Through the use of innovative data models and technology supported by an engaged team that focuses untiringly on customer delight, Aye is trying to live up to its vision.