Earlier on Monday, May 15th Digital lender, Aye Finance officially announced that it has managed to raise over Rs 30 crore from the State bank of India (SBI). The Digital lender further revealed that the granted debt facility would be utilized for the purpose of offering an affordable line of credit to the micro enterprises and also ensure its involvement in the mainstream economy.
This marks the second occasion where SBI has extended a debt facility to Aye Finance. As, initially back in May 2017, the micro-lending platform had announced that it had raised Rs 20 crore in debt funding from the PSU bank.
About Aye Finance.
Aye Finance was founded back in 2014 by the joint efforts of two bankers Sanjay Sharma and Vikram Jetley. Basically, the Digital lender uses a unique ‘Cluster-based Credit Assesment’ methodology for highlighting the risk of lending to microbusiness that has continuously being ignored by banks and financial institution. Along with this, in order to get connected with India’s most flourishing and under deserved businesses, the Fintech lender also derives lending insights from substitute data and issues cloud-based technologies and cost mobility.
The co-founder of Aye Finance, Sanjay Sharma stated, “By providing micro-enterprises with flexible yet affordable loans to fund their businesses, we at Aye aim to solve the biggest obstacle for them. We express our utmost gratitude to SBI for instilling their faith in us for the second time as they have granted us a debt facility which would permit us to empower many such enterprises. As we have already successfully integrated fintech with fintouch, it has made it possible for us to reach out to as many as five crore unorganised microenterprises, and these additional funds will help us to increase our reach and bring the ‘missing middle’ into the folds of organised lending,” as per the statement was given by Sanjay Sharma.
Accion, SAIF Partners, and LGT Impact Ventures are the three marque investors of Aye.
The digital lender has already conducted advanced talks with investors for raising an additional $20-25 million by the end of the current quarter.
So far, the micro-lender has established a network of 72 branches in as many as 10 Indian states to handhold the borrowers through the pre and post-loan process. Nearly 1,000 employees are working for Aye Finance.
Notably in February this year, Aye finance had raised $3.9 million through Hinduja Finance and IntelleGrow, while also raising nearly Rs 30 crore in debt last month from BlueOrchard Finance, a Swiss-based investor.