The startup has seen encouraging repayment trends and will start lending slowly to small businesses from July.
Gurugram-based digital lending platform Aye Finance has raised Rs 210 crore in series E round of funding led by existing investor CapitalG, Google’s independent growth fund. Other existing investors LGT Lightstone, Falcon Edge Capital, A91 Partners and MAJ Invest have also participated in the round.
Since its inception in 2014, Aye Finance has disbursed close to Rs 3,000 crore to small businesses which were not catered to by traditional lenders. The fintech lender deploys statistical models and predictive analytics to decide on the credit worthiness of borrowers. These alternate models work in the absence of formal business documents and prior credit histories.
"Closing a major funding round during these times of economic uncertainty reinforces the value that our investors see in Aye Finance, difficult times are a true test of a good lender and we have already started showing significant improvements in the customer repayments in the past months," said Sanjay Sharma, Managing Director, Aye Finance.
With this round of funding, Aye has raised Rs 690 crore of equity funding. During a recent interaction with Moneycontrol, Sharma had said that Aye Finance will start lending out small amounts of money from July to help businesses to restart operations after the long period of lockdown due to Covid-19.
The company, which was giving out close to Rs 200 crore per month, will now be disbursing around Rs 40 to 50 crore monthly, he had said.Follow our coverage of the coronavirus crisis here