Micro-lender Aye finance reaches 500 Cr debt fund mark, raises Rs 30 Cr in fresh round

hillhouse capital

Micro, small and medium enterprises (MSMEs) lender Aye Finance has raised Rs 30 crore in debt funding from existing investor BlueOrchard Finance. The Swiss-based impact investor has already infused Rs 100 crore in the Gurugram-based lender in previous financing rounds.

With the fresh round, the lending firm will expand its portfolio. This latest capital infusion also marks the third round of debt funding in this year for Aye Finance. And the total capital raised through debt has crossed Rs 500 mark for the fintech company.

Incorporated in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance provides customer-centred financial services to micro and small businesses. It focuses solely on micro and small enterprises with Rs 10 lakh to Rs 1 crore in turnover every year. The average loan size is Rs 1 lakh.

The startup claims to have disbursed Rs 500 crore to more than 40,000 customers since its inception. It has more than 72 branches across 10 states in North and South India.

According to Sharma, Aye Finance raises capital through debt financing since equity investments usually demand bigger returns. “A lot of new age financiers are heavy on equity, but debt has a good success model with reasonable return,” he said.

The company competes with Lendingkart, InCred, Capital Float, Indifi Technologies, and many others.

Earlier in February, the firm had raised Rs 25 crore from Hinduja Leyland Finance and Intellegrow. In January this year, the company raised Rs 40 crore in debt funding from IFMR Capital. Last year in September, Aye Finance snapped up Rs 44 crore rupee-denominated debt from the Netherlands-based Triodos Investment Management.

The development was reported by TOI.

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