Aye Finance, a fintech start-up backed by CapitalG, has raised $10 million in debt funding from leading global impact investment manager, responsAbility and Northern Arc, through the issuance of Non Convertible Debentures (NCDs). The start-up will use the funding to bolster its lending portfolio and offer affordable business loans to a larger number of micro enterprises.
“I believe the market needs being addressed by us are very large, and having enabled the inclusion of over 1,00,000 micro entrepreneurs, we have established that our cluster-based credit assessment methodology has the capability to scale up rapidly, while delivering good value to our customers. And, despite the bearish sentiments in the market, we have continued to get support from the industry in our mission to transform micro enterprise lending in India, as we continue to demonstrate robust metrics on growth and quality,” Sanjay Sharma, Managing Director at Aye Finance, said.
Aye Finance has disbursed more than Rs 1,250 crore to more than 1 lakh customers. Aye was founded by Sanjay Sharma and Vikram Jetley, and operates through 104 branches spread across 11 northern, central and southern states.