The Gurgaon-based digital MSME lender, Aye Finance received Rs 30 Cr as fresh funds from Swiss-based impact investor, BlueOrchard Finance Ltd. The funds received are part of debt funding and would help the MSME lender to further diversify its lending portfolio, reaching out to the long trail of MSMEs in India.
Aye Finance, founded in 2014, has a proprietary data driven underwriting technique “Cluster Based Credit Assessment” which ensures robust credit selection in the absence of good financials or banking records and without prior credit bureau history. Its customized appraisal techniques for each industry and cluster helps it serve a vast majority of customers who fall out of the purview of traditional financing due to their strict and non-flexible credit norms.
Currently Aye serves in 10 states with 72 branches in India. From disbursing 4000 loans in FY15-16 and 13000 loans in FY16-17 to 40,000 loans in FY17-18, the Company is growing exponentially, while maintaining good quality portfolio. This has been possible because Aye has been able to customize its products to suit the micro entrepreneur needs and offer them products at their terms.
Commenting on the fundraising, Sanjay Sharma, Managing Director and Founder Aye Finance, said “It is humbling to see the amount of trust BlueOrchard has shown in Aye Finance. While we are thankful for their timely support and encouragement through the investment of funds, it also inspires us to continue the work we are doing in creating a difference in the Indian economy by supporting the MSME sector. We are going to utilize the latest infusion of funds to increase our reach to bring the “missing middle” into the folds of organised lending.”
BlueOrchard is a leading global impact investment manager. The firm is dedicated to fostering inclusive and climate-smart growth, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. Today, BlueOrchard provides investors around the world with premium investment solutions, including credit, private equity, and sustainable infrastructure, as well as debt and equity financing to institutions in emerging and frontier markets. BlueOrchard has invested to date more than USD 4.7bn across 70 emerging and frontier markets, enabling tangible social impact. The cooperation between Aye Finance and BlueOrchard began in May 2017, when the MSME lender raised INR 27 Crore from the global impact investor. Since then BlueOrchard has invested more than INR 100 Cr in Aye.
With its consistent and organized efforts, Aye Finance is well on its way to becoming a leading MSME lender in India.
Recent capital raised by Aye Finance:
In November 2016, AYE Finance (AYE) had closed its Series B round of funding of Rs 70 crore from LGT IV and its existing investors SAIF Partners and Accion.
In May 2017, Aye Finance had been sanctioned credit facilities for Rs 20 crore from State Bank of India, for on-lending.
In the end of May 2017, Aye Finance had raised $8 million from Blue Orchard, a leading global impact investment manager.
In July 2017, Aye Finance had raised funds by selling a part of its loan portfolio to Hinduja Leyland Finance.
In September 2017, Chennai-based IFMR Capital had successfully executed the issuance of Non-Convertible Debentures (NCDs) aggregating to Rs. 44 crore for Aye Finance.
In February 2018, Aye Finance announced raising Rs 25 Cr through a securitization deal which was facilitated by Vivriti Capital.