Digital Fintech Lender, Aye Finance, has scooped up $7.99 Mn (55 Cr) in its latest funding round. The startup’s latest funding round is financed through a debt instrument and is led by the DCB Bank via securitisation deal. The fresh capital infusion will be proceeded towards expanding company’s loan portfolio and providing affordable credit to India’s burgeoning MSME industry.
Since inception in 2014, the five year old Gurgaon headquartered startup has till date ploughed almost INR 480 Cr ($69.76 Mn) through equity capital and INR 1100 Cr ($159.88 Mn) via debt route. The company witnessed last capital infusion in March this year, raising approximately $33.34 Mn as part of its series D round from Falcon Edge Capital and other existing investors.
Aye Finance is riding high on the Fintech revolution that is capitalizing on the credit starved MSME sector and disruptive technologies that is redefining the way credit is provided to the borrower. The company, like most fintechs, uses newer tools like psychometric profile tools, behaviour based statistical credit scores and other insightful tools to know the exact credit worthiness of the borrower.
Aye Finance claims to have disbursed over Rs 2,000 crore loan to nearly 1,25, 000 businesses since its inception. According to global consultancy PricewaterhouseCoopers, the overall lending by NBFC companies has grown by 18% during last five years. This is mostly thanks to deep internet penetration and also emergence of cutting edge technologies like artificial intelligence and machine learning.
However, the prevailing capital crunch in the market due to IL&FS’ massive default of INR 90,000 crore last year continues to hit NBFC companies really hard. Few weeks back, Finance minister Nirmala Sitharaman in her maiden budget did announce to pump nearly INR 70K Cr to banks for improving the liquidity situation in the market.