Aye Finance raises $10 million in debt from Triple Jump B.V and MicroVest Fund
With the recent fund raised, the company is gearing up to bolster its lending portfolio and offer affordable business loans to larger number of microenterprises in India.
July 26, 2018 / 02:59 PM IST
Aye Finance, a fintech lender, has raised USD 10 million in debt funding from Triple Jump BV and MicroVest Funds, through the issuance of non-convertible debentures.
With the recent fund raise, the company is gearing up to bolster its lending portfolio and offer affordable business loans to a large number of microenterprises in India.
“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,” said Sanjay Sharma, MD and founder of Aye Finance.
“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.
Last month Aye Finance became the first finance company to receive equity investment from CapitalG (formerly Google Capital). It raised USD 21.5 Million in Series C equity from the venture capital fund owned by Alphabet Inc. as well as its exiting investors SAIF Partners and LGT.