New Delhi [India]: In their latest round of funding, Aye Finance on Monday announced raising of funds by selling part of its portfolio, under a securitisation deal, to Mahindra & Mahindra Financial Services.
Through this deal, which was facilitated by IFMR Capital, Aye further diversified its funding sources, having raised money last year through equity and more recently through debt from the State Bank of India (SBI) and Blue Orchard a leading global impact investment manager.
The Gurgaon-based company serves the credit worthy albeit the underserved MSME sector through a network of 67 branches in 10 Indian states. Aye has successfully made a ground level connect with India’s MSME sector and offers customised and innovative financial products to match the sectors’ business needs.
It has so far disbursed over Rs. 200 crores in loans and has enabled the financial inclusion of over 20,000 micro and small businesses
“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 securitising part of our loan book, we free up capital which in turn improves our capital adequacy,” said Sanjay Sharma, managing director and co-founder, Aye Finance.
Aye Finance distinguishes itself by utilising technology in mitigating the challenges faced by MSMEs in securing loans. By deploying a cloud-computing architecture and automating front-end (eCRM), Aye Finance is able to bring down the cost of delivery. (ANI)