Headquartered in Gurugram, India, Aye Finance is a digital lending platform that provides financial solutions to small firms
In a significant development for the Indian fintech sector, Aye Finance has raised $37.18 million in a fresh funding round led by British International Investment (BII). This Series F funding round takes Aye’s total fundraising to nearly $200 million and marks another milestone in the company’s journey towards helping micro enterprises grow their businesses and employees expand their incomes.
Aye’s Journey so Far
Founded in 2014, Aye Finance has come a long way since its inception. The startup provides business loans in the form of mortgage, hypothecation, and term credit to underserved micro enterprises that find it challenging to secure working capital requirements from traditional lenders, including banks. With an average ticket size of $1,800, Aye has disbursed over $959 million of credit to more than 700,000 unorganized businesses.
Key Highlights of the Funding Round
- The all-equity Series F round involves the participation of Waterfield Fund of Funds and A91 Partners, an existing investor.
- This funding round does not involve any secondary transactions, making it a significant milestone for Aye Finance.
- With this fresh capital, Aye plans to continue expanding its reach and providing more financial solutions to small businesses.
India’s Fintech Ecosystem: Challenges and Opportunities
The Indian government has introduced several initiatives to ease credit requirements for micro enterprises. However, the lack of credit for small businesses remains a significant challenge in the country. Startups like Aye are utilizing this gap by offering credit through their platforms.
Aye Finance’s Plans for the Future
- With its revenue increasing by 45% to $77.10 million in FY 2023, Aye is set to continue its growth journey.
- The startup plans to go public in FY 2026 and expand its reach across the country.
Quotes from Key Stakeholders
- Sanjay Sharma, co-founder, MD, and CEO of Aye Finance: "We believe there is immense potential in lending to underserved micro enterprises, and the fresh capital will provide a strong fillip to our compounding story."
- Gaurav Malhotra, Director for Financial Services at BII: "Our investment in Aye Finance underscores our commitment to back companies that have a strong development impact philosophy and promote financial inclusion for India’s underserved groups."
Conclusion
Aye Finance’s $37.18 million funding round is a testament to the growing importance of fintech startups in India. With its innovative approach to providing financial solutions to small businesses, Aye is poised to continue making a significant impact on the country’s economic landscape.
About Aye Finance
- Founded: 2014
- Headquarters: Gurugram, India
- Funding Rounds:
- Series F: $37.18 million (led by British International Investment)
- Series E: $27.5 million (led by Alphabet’s CapitalG)
About British International Investment
- Founded: 1947 (as the UK Export Credits Guarantee Department)
- Headquarters: London, UK
- Investments:
- Aye Finance (Series F)
- Other Indian fintech startups
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