Aye Finance

Aye Finance raises $10M funding in Debt financing from Catalyst Trusteeship Ltd.

Aye Finance
Source: KNN India

Aye Finance is a financial technology company that aims to make an economic transformation for Micro and Small enterprises. The Gurugram-based start-up has recently announced to raise USD 10 million funding in its latest debt financing round which was led by Catalyst Trusteeship Limited.

The financing was conducted by Catalyst through its investment arms, Masala Investment Sarl and AAV Sarl, as reported by Inc42.

Founded back in 2014 by Vikram Jetley and Sanjay Sharma, Aye Finance provides business loans to Micro and Small Enterprises in India. The company aim to offer innovative and customer-friendly financial services to small and micro start-ups by leveraging effective technology and operational processes. Furthermore, their efforts and business model help micro and small businesses to function better financially and also save them a subsequent amount through their platform.

According to a report by Inc42 and as mentioned in the report filed with the Ministry of Corporate Affairs, Aye Finance has allocated 3,85,875 debentures to Masala Investment Sarl and AAV Sarl at each costing Rs 38.58 Crore which leads up to a concluding amount of Rs 17.17 crore.

Furthermore, the financial technology or fintech start-up is offering its services to micro-enterprises in over 14 Indian states and according to sources, the company is planning to further expand its services to Jharkhand, Bihar, Maharashtra and Gujarat in the future.

Sanjay Sharma, co-founder and Managing Director mentioned in a statement claiming to have disbursed a figure around INR 2700 crore till date and have provided financial assistance to over 1,96,000 micro and small-scale businesses in India. As mentioned in a report by Inc42, Sharma further added that Aye Finance has doubled its revenue from INR 1,047 crore previously to INR 1,800 crore in the Financial Year 2020.

According to the company’s profile data on CrunchBase, Aye Finance has raised total funds worth USD 261.2 million till date in over 23 funding rounds.

Existing backers of the company include FMO, LGT, SAIF Partners, CapitalG, MAJ Invest, A91 Partners, BlueOrchard, ICICI Bank, HDFC Bank, SBI Bank, responsibility and many others.

Furthermore, the last funding round before the latest debt financing round, the company had raised INR 125 crore from Invest in Vision, a German-based impact investor. The funding money was intended to be utilised by Aye Finance for the inclusion of job creation and provide financial aid to disadvantaged micro and small enterprises.