Aye Finance announced raising Rs 25 Cr through a securitization deal which was facilitated by Vivriti Capital. Three investors participated in the deal including stellar names like Hinduja Leyland Finance and Intellegrow. This is the second securitization deal for Aye Finance. Last year in July, Aye had raised INR 10 Cr by securitizing part of its portfolio.
In a short span of time of four years, Aye Finance has become a leading name in the micro and small lending segment in India. During the short tenure, Aye has disbursed over INR 500 crore to 40,000 under-served and under-banked grass root businesses. Its current AUM is INR 350 crores and the team at Aye looks well poised to disburse INR 600 Cr by the end of the current financial year.
Founded by career bankers Sanjay Sharma and Vikram Jetley in 2014, Aye has successfully made a ground level connect with India’s thriving MSME sector with its 72 Branches in 10 Indian states spread across the northern, central and southern parts. It deploys its proprietary “Cluster Based Methodology” and alternate data insights to assess the credit worthiness of micro businesses and offers the credit starved MSME sector business loans which are customized to their unique needs.
Commenting on this latest fund raise Mr. Sanjay Sharma, Founder and Managing Director Aye Finance said “I believe if India has to rise with a social balance, the micro businesses at the bottom of the pyramid need to be enabled and empowered. But lending to this segment poses innumerable challenges. The loan requirements of these businesses ranges between INR 50,000 and INR 500,000, which makes servicing these small ticket loans an expensive proposition. 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.”
Aye Finance has earlier raised equity funds from three reputed Venture Capital Funds – Accion International, SAIF Partners and LGT Impact Ventures. Furthermore, the company is in advanced talks with investors to raise INR 150 Crore in Series C funding.
Aye’s leadership is rallied around the vision to become an admired financial institution in micro and small enterprise lending. Through the use of innovative data models and technology supported by an engaged team that focuses tirelessly on customer delight, Aye is working to live up to its vision.