Online lender from micro businesses Aye Finance said that it has received Rs 30 crore debt funding from from Swiss-based impact investor, BlueOrchard Finance Ltd. The funds would help the MSME lender to further diversify its lending portfolio, reaching out to the long trail of MSMEs in India.

The Gurugram-based lender Aye founded in 2014, has a proprietary data driven underwriting technique “Cluster Based Credit Assessment” which ensures robust credit selection in the absence of good financials or banking records and without prior credit bureau history, it said in a statement.

Its customized appraisal techniques for each industry and cluster helps it serve a vast majority of customers who fall out of the purview of traditional financing due to their strict and non-flexible credit norms.

Currently, Aye serves in 10 states with 72 branches in India. From disbursing 4,000 loans in FY15–16 and 13,000 loans in FY16–17 to 40,000 loans in FY17–18, the company is growing exponentially, while maintaining good quality portfolio. This has been possible because Aye has been able to customize its products to suit the micro entrepreneur needs and offer them products at their terms.

Sanjay Sharma, Managing Director and Founder Aye Finance, said “We are going to utilize the latest infusion of funds to increase our reach to bring the missing middle into the folds of organised lending.”