Gurugram-based Micro, small and medium enterprises (MSMEs) lender Aye Finance has raised Rs 40 crore in debt funding from IFMR Capital.
The fintech startup plans to deploy the fresh proceed towards strengthening its lending portfolio to the underserved MSME sector, reports ET.
In the current financial year, the company has raised Rs 250 crore in debt.
Aye Finance lends at 22-28 per cent yearly rate and has more than 72 branches across 10 states in North and South India. It has achieved total loan disbursals of Rs 500 crore to more than 40,000 customers.
Founded in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance provides customer-centred financial services to micro and small businesses. It lends working capital to customers working across 40 different industry clusters, from manufacturers of shoes and sports equipment to furniture and readymade garment.
Aye Finance focused solely on micro and small enterprises with Rs 10 lakh to Rs 1 crore in turnover every year.
In July last year, the lending startup raised Rs 44 crore rupee-denominated debt from the Netherlands-based Triodos Bank’s wholly owned asset management subsidiary Triodos Investment Management. In the same year, it secured Rs 51 crore (approx) from global impact investment manager, Blue Orchard through non-convertible debentures (NCDs).
Also Read: P2P lenders join hands together to form ‘Association of P2P Lending Platforms’
According to the Reserve Bank of India (RBI), NBFC loans have grown at 16.6 percent, compared to 8.8 percent for the banking sector in 2017.
The RBI’s Financial Stability Report (December 2016) showed a 33.1 percent increase in loan and advances given by deposit-taking NBFCs and a 12.5 percent increase in advances given by the non-deposit-taking NBFCs.
Lendingkart, InCred, Capital Float, Indifi Technologies, CreditMantri, IndiaLends and Instakash Technologies, among others are the other startups in the lending space.
Aye Finance: Website