Gurugram based Non Banking Financial Company, Aye Finance has raised USD 8 Mn from Blue Orchard, a leading global impact investment manager. The funding was raised through NCDs (non- convertible debentures) with a maturity period of five years.
According to the founders, these funds will be utilized to strengthen its funding position and to facilitate the inclusion of a larger number of MSMEs in the realm of mainstream economy.
The company was founded in 2014 by Sanjay Sharma and Vikram Jetley. Aye Finance provides customer-centric financial services to micro and small businesses. It currently has a network of 39 branches with a team of about 450 employees. Aye Finance claims to have impacted over 100,000 families through its business enterprise loans.
Sanjay Sharma, Managing Director, Aye Finance said in a statement:
“By deploying a cloud-computing architecture and data science methods to derive insights about each of our industry clusters, we are able to bring down the cost of delivery and offer credit solutions at affordable rates to the micro and small enterprises. It is part of Aye Finance’s vision to leverage technology prowess of today for improving the productivity of field force, detecting frauds, profiling risks and exercising dual control on processes.”
On the other hand, Switzerland-headquartered Blue Orchard was founded in 2001 by initiative of the UN as the first commercial manager of microfinance debt investments worldwide. It offers premium investment solutions to qualified investors and provides debt and equity financing to institutions in emerging and frontier markets.
Aye Finance had raised its Series A round of USD 3 Mn in December 2015. That was followed by a Series B round of equity funding worth USD 10 Mn in November 2016. This round was led by LGT IV, SAIF Partners and Accion. This year in March, the company received a credit facility of USD 3.1 Mn from SBI. Other startups include Chennai-based fintech startup, Veritas Finance, Lendingkart, and KredX.