Fin-tech startup Aye Finance, which provides loans to SMEs, has raised Rs 10 crores fund by selling its SMEs loan portfolio, under a securitization deal, to Mahindra & Mahindra Financial Services. Through this deal, Aye Finance further diversified its funding sources, had raised money last year through equity and most recently through debt from India’s biggest PSU Bank SBI and a leading global impact investment manager, Blue Orchard.
Founded in 2014 by career bankers Sanjay Sharma and Vikram Jetley in 2014, Aye Finance has successfully made a ground level connect with India’s thriving MSME sector and offers customized and innovative financial products to match the sectors’ business needs.
Gurgaon based Aye Finance, a non-banking finance company (NBFC) licensed by RBI, serves the credit worthy albeit the underserved MSME sector through a network of 67 branches in 10 Indian States.
Since its inception, the company has disbursed over INR 200 crores in loans and has enabled the financial inclusion of over 20,000 micro and small businesses.
Commenting on this occasion Mr Sanjay Sharma, Managing Director and Co-Founder, Aye Finance said “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. These additional funds have been raised on the backing of our robust underwriting and sound portfolio. By securitizing part of our loan book, we free up capital which in turn improves our capital adequacy.”
Aye Finance distinguishes itself by utilizing technology in mitigating the challenges faced by MSMEs in securing loans. By deploying a cloud-computing architecture and automating front-end (eCRM), the company is able to bring down the cost of delivery. As a part of its vision to leverage technology prowess of today for improving the productivity of field force, detecting frauds and exercising dual control on processes. With its consistent and organized efforts, the Organization aspires to be recognized as a leading enterprise in the country.
Earlier this year, Aye Finance had raised $8 million from Blue Orchard, a leading global impact investment manager. The funds were raised through NCDs (non-convertible debentures) with a maturity period of five years.