Aye Finance raises ₹75 crore from Triple Jump, Northern Arc
Premium- Gurugram-based MSME lending company says it'll use these funds for on-lending
MSME lending company Aye Finance has announced a ₹75 crore debt raise from leading global impact investment manager, Triple Jump BV and Northern Arc, a diversified non-banking finance company (NBFC) focussed on under-served households and businesses. Aye has said it'll use these funds for on-lending.
The CapitalG backed lender Aye was incepted in 2014 and since then it has disbursed over ₹5,000 crore to over three and a half lakh micro-enterprises.
Recently, Gurugram-headquartered Aye had announced the opening of 100 new centres, which expanded its presence to 311 in 20 states. With this fresh infusion of funds, the lender aims to make credit a reality for more micro-enterprises from the underserved segment.
Aye Finance is backed by CapitalG (Alphabet Inc Growth Equity Fund), Elevation Capital, LGT, Falcon Edge Capital, A91 Partners and MAJ Invest, and over 20 other investors.
Sanjay Sharma, Managing Director, Aye Finance said, “This fund raise underscores the trust the investor community has in our model and in our ability to achieve our mission of easing access for the grassroots businesses to affordable and customised credit solutions."
Jarri Jung, Director Financial Institutions at Triple Jump, said the company is happy to further expand its relationship through this joint transaction with Northern Arc. "Over the years, Aye Finance has made a tremendous impact for MSME’s in India that have difficulties obtaining funding. Triple Jump is proud to have partnered with Aye Finance and is looking forward to continuing to support the company in its mission," said Jung.
Bama Balakrishnan, COO, Northern Arc Capital, said Northern Arc Capital believes that bridging the huge credit requirement of the MSME sector, especially as they rebuild from the impact of the Covid-19 pandemic, is essential to drive economic growth across the country.
Aye Finance is a pan-India player providing unsecured small-ticket business loans to a large credit-starved micro-enterprise segment. Aye claims it has cracked this difficult-to-lend segment with its unique cluster-based credit appraisal approach and optimally digitised phygital model.
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