Aye Finance claims to have disbursed over $77 million in loan to 40,000 MSMEs. It also boasts to have around $54 million in assets under management.
Gurugram-based small business loan provider, Aye Finance, has raised $3.8 million from Hinduja Leyland Finance and Intellegrow. The investment facilitated from Vivriti Capital was a securitization deal. Last July the company had raised $1.5 million by securitizing the part of its portfolio. This being second deal of Aye Finance, the company plans to use the funds for user acquisition
Founded by Sanjay Sharma and Vikram Jetley in 2014, Aye Finance enables non-banking finance that provides mortgage, hypothecation and term loan services to micro, small and medium enterprises (MSMEs). The company claims to have 72 branches across 10 Indian states. Previously, they had raised funds from venture capital funds, including Accion International, SAIF Partners and LGT Impact Ventures.
The company further claims to have disbursed over $77 million in loan to 40,000 small and medium enterprises. It also boasts to have around $54 million in assets under management.
“We at Aye have not only designed our processes and automation at minimum cost, but we have also partnered with various lenders, which allows us to offer economical loans, bringing this crucial sector of the economy under the inclusive fold of formal lending,” said Sanjay Sharma, managing director, Aye Finance,
The sector is crowded with stiff competition. According to a report by PWC, alternative lending is the second most funded and one of the fastest growing segments in the Indian FinTech space. Around 37% of GDP is contributed to by MSMEs but the supply of credit lines is disproportionate. It isn’t surprising then that there are 158 new startups in the space as of 2016. However, competition is stiff, with only 27% of founded companies obtaining funding, and 27% of those going on to raise Series A capital.