Aye Finance Raises Debt Funding of Rs 80 Crores from Undisclosed Investor

Aye Finance plans to utilise the latest infusion of funds for further growing its lending portfolio

Capital G backed fintech lender, Aye Finance has raised Rs 80 Crores debt funding from an undisclosed investor. As India’s leading MSME lender, Aye Finance plans to utilise the latest infusion of funds for further growing its lending portfolio. This funding comes within a month of the news of the fintech lender raising Rs 55 crores from DCB Bank.
Aye has enjoyed a successful run in India having disbursed over Rs 2200 crores to 1,50,000 micro enterprises since its inception in 2014. In the last 6 months it opened 67 new branches and expanded its presence to 171 branches in 18 Indian States / UT to further ease micro enterprises access to affordable credit. Armed with its unique “Cluster Based Credit Assessment Methodology” and a variety of alternate data analysis techniques, the fintech lender is well poised to continue on its growth trajectory in the current fiscal as well. Aye Finance featured in the recently released list of 268 systemically important NBFCs in India by RBI.
Aye disrupted the status quo in MSME lending by innovatively adopting the industry-clusters approach for credit assessment of the unbanked micro enterprise segment. The approach gives Aye Finance a peak into various alternate data sources like the typical cash-flows, seasonal fluctuations, and the strength of the ancillary network, which has helped it make accurate risk selection even in the absence of traditional business documentation and credit histories.
Within a short span of 5 years, Aye has transitioned from a start up to a mid-sized company and its ability to create a sustainable business continues to be validated by tremendous support from all its funding partners – debt as well as equity. Last financial year it closed 2 equity rounds – Series C and D, raised Rs 380 crores, and added CapitalG, Falcon Edge and MAJ Invest to its suite of accomplished investors.

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