Aye Finance, a Gurugram-based finance start-up, has raised Rs 10 crore by selling a part of its SME loan portfolio under a securitisation deal to Mahindra & Mahindra Financial Services.
Through this deal, which was facilitated by IFMR Capital, Aye Finance further diversified its Funding sources. Last year, the fintech firm had raised money through equity; and more recently through debt, from the State Bank of India (SBI) and Blue Orchard a leading global impact investment manager, reported ANI.
Aye Finance is a finance start-up, which provides innovative and customer centered financial services to micro and small businesses through knowledgeable team, effective technology and robust processes, to power their growth into the new-age India.
Sanjay Sharma, MD and co-founder of Aye Finance said,”We have raised close to Rs 100 crore including the current raise which will be added towards providing more loans to MSMEs (micro, small and medium enterprises).”
” In the year 2017 we will hit key business milestones, increasing our footprint and loan book to three times the size. As our business expands, we will be looking at diversified ways of raising funds,” he added.
The portfolio has been sold to Mahindra and Mahindra Financial Services under a securitization deal, which is one of India’s leading Rural NBFC headquartered in Mumbai, India. It generally offers services like Vehicle Financing, SME Financing, Housing Finance, Insurance Broking, Asset Management Company (Mutual Fund), Mutual Fund distribution, Fixed Deposits.
Mahindra Finance also has four subsidiaries to its name which are Mahindra Mutual Fund, Mahindra Insurance Brokers Limited, Mahindra Rural Housing Finance Limited and Mahindra Business and Consulting Services Private Limited.
The company serves the credit worthy albeit the underserved MSME sector through a network of 67 branches in 10 Indian states. Aye has successfully made a ground level connect with India’s MSME sector and offers customized and innovative financial products to match the sector’s business needs.