Aye Finance Pvt. Ltd has secured INR 81.2 Cr in external commercial borrowings (ECB) from responsAbility Investments AG
- ByStartupStory | December 2, 2022
Aye Finance which specializes in lending to the micro-enterprise segment, has raised $10 million of ECB (External Commercial Borrowings) from Swiss-based responsAbility Investments AG. The Swiss-based farm has been supporting Aye in its mission to create an inclusive India since 2017 and this is the fifth investment via debt for the fintech lender. Aye will make use of these additional funds to offer business loans to the excluded micro enterprise sector to support their growth and enable their inclusion into the formal economy.
“We are currently witnessing a surge in credit applications from the microenterprise sector as businesses are being rebuilt post the disruptions caused by the pandemic. The support we are receiving from global impact leaders like responsAbility allows us to continue in our mission of transforming microenterprise lending in India by providing entrepreneurs customized business loans at affordable prices,” said Sanjay Sharma, MD, and founder of Aye Finance.
In India, there are over 60 million a huge number of microenterprises (over 60 million) and a majority of these businesses struggle to access credit from formal lending channels. Aye Finance Pvt. Ltd was founded in 2014, Aye has been championing the cause of providing affordable business loans to this excluded segment. The lender uses its proprietary cluster-based credit assessment methodology coupled with artificial intelligence algorithms to make robust risk selections even in the absence of traditional business documentation. The lender has successfully deployed this methodology and solved the credit challenges of over 4,50,000 unorganized grassroots businesses, claimed by the company in a statement.
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