Non-banking finance company Aye Finance has raised Rs 55 crore ($7.9 million at the current exchange rate ) from DCB Bank through a securitisation deal.
Aye Finance will use the fresh funds to grow its loan book and offer affordable and customised credit solutions to the credit starved micro enterprises in India, a company statement said.
The deal was syndicated by Vivriti Capital, the statement added.
“The support we receive from our debt partners allow us to continue on our mission of providing inclusive finance to the micro enterprise sector and power their growth,” said Sanjay Sharma, managing director of Aye Finance. “We look forward to further strengthening our relationship with DCB Bank. This fresh round of funds is a step in this direction.”
Aye Finance was founded in 2014 by Sharma and Vikram Jetley, both former executives at Ujjivan Financial Services, the holding firm for Ujjivan Small Finance Bank. The company focuses on micro, small and medium enterprises. Google parent Alphabet’s growth equity fund CapitalG, SAIF Partners, Accion International and LGT Impact Ventures are among its investors.
The Gurugram-based company has raised over Rs 480 crore in equity and approximately Rs 1,100 crore through a variety of debt instruments.
Aye Finance provides working capital and business development loans using a cluster-based approach, supported by a proprietary underwriting methodology. The company claims to have disbursed over Rs 2,000 crore to more than 125,000 under-served and under-banked grass root businesses.
Other developments in the segment:
- July 2019: Gurugram based-online lender Indifi raised $21.05 million (Rs 145 crore) in a fresh funding round from existing investors.
- July 2019: Paytm partnered with Clix Finance to offer instant digital loans.
- July 2019: Mumbai-based financial services company CredAble’s wholly-owned subsidiary, Equentia Financial Service, has been granted a non-banking finance company licence by the Reserve Bank of India.