Aye Finance raises Rs. 40 cr from IFMR to improve lending to MSMEs

New Delhi, Jan 25 (KNN) A move which would improve credit flow to the MSME sector, Aye Finance raised Rs. 40 crore as term loan for better disbursal of loans to this sector. It raised the finance as Term Loan from IFMR Capital to use the fresh capital to expand its online lending offerings in the MSME sector.

IFMR Capital, the investor, aims to provide efficient and reliable access to capital markets for institutions like Aye Finance to further fund the crucial sectors.

Aye Finance created a cluster-based methodology that utilises the deep insights of the operations of a business cluster to make good lending decisions despite the absence of business accounts, credit histories or banking track records.

In October last year Aye Finance announced that it plans to raise USD 25-40 million by March 2018 to fuel its expansion plans.

During the current financial year Aye Finance has raised Rs. 250 crore in debt from the State Bank of India (SBI), Mahindra & Mahindra, Hinduja Leyland Finance and leading global impact investment managers Blue Orchard, Triodos Investment Management and Symbiotics.

Aye Finance was founded by Sanjay Sharma and Vikram Jetley in 2014. It is a Non-Banking Finance Company. It provides mortgage, hypothecation and term loan services to Micro, Small and Medium Enterprises (MSMEs). The company provides its services across 72 branches in North, Central and Southern States. The company has more than 1000 employees.