AYE Finance raises $21.5 million from CapitalG, SAIF Partners and LGT
The company claims to have deployed over 60,000 loans to micro enterprise owners across India
June 15, 2018 / 06:56 PM IST
Non-banking finance company AYE Finance on Monday said it has raised $21.5 million in Series C round of funding from CapitalG. Its existing investors SAIF Partners and LGT also participated in the equity round.
AYE will be using the fund to grow the business and improve its technology.
Founded by two bankers Sanjay Sharma and Vikram Jetley in March 2014, AYE Finance aims to solve the funding problems of the micro enterprises that have so far relied only on informal sources of financing.
AYE provides working capital and business development loans to underserved micro and small enterprises using a cluster-based approach, supported by a proprietary underwriting methodology. Its operations are spread across 72 branches in 10 states.
So far, the company claims to have deployed over 60,000 loans to micro enterprise owners across India.
"We have used insightful data models and technology to provide affordable business loans to the financially excluded micro enterprises across India. CapitalG’s access to Google expertise in scaling businesses using analytics and technology will strongly supplement our approach. We are at an exciting juncture, where the business model has been proven and is also scaling well. We intend to cover the large unaddressed MSME finance market that other finance providers have found difficult to service," said Sanjay Sharma, founder and managing director, AYE.
Bangalore based Unitus Capital acted as the transaction advisor to AYE, while JSA and Induslaw acted as legal advisors to the transaction.