AYE Finance, a Delhi-based non-banking finance startup has today announced that it has closed its Series B round of funding worth Rs 70 crore (approx $10 million). The round saw participation from LGT IV, along with existing investors SAIF Partners and Accion.
The company will use the capital raised recently to further grow its outreach across the country with a target loan portfolio of more than Rs 2,000 crore over the next 5 years.
Commenting on the Series B fundraising round, Sanjay Sharma, Co-Founder of AYE Finance, said,
We are happy to be partnering with LGT IV for the next stage of our growth. Our existing investors, SAIF and Accion too have demonstrated continued faith in us and have contributed in the current round. LGT IV, SAIF and Accion have a proven track record of investing in quality growth companies.
I look forward to our association as we take AYE Finance to its next stage of evolution to achieve our common vision of providing comprehensive financial services to small and micro enterprises to power the inclusive growth of the country.
AYE is a fin-tech startup which provides loans to micro and small, enterprises across India. It was founded in 2014 by Sanjay Sharma and Vikram Jetley. The platform uses its own proprietary methodology to make working capital loans available. Typically, the loans provided by AYE ranges from Rs 50,000 to Rs 25 lakhs and support the working capital needs of micro enterprises across India.
The company has 31 branches across 7 states and claims to have impacted the lives of more than 250,000 people. What helped the company overcome cash challenges is its non-cash loan disbursement facilities along with EMI repayment.
AYE uses an innovative industry cluster-based approach to access and evaluate borrowers and is already catering to the credit needs of more than 40 industry clusters across the country. For underwriting “thin file” customers, it uses proprietary technologies of industry cluster insights, psychometric mapping, and business sciences for regenerating cash-flows.