Aye finance to raise series C funding for business expansion, MSME credit on the agenda

New Delhi, Oct 26 (KNN) Aye Finance, Gurgaon based lender to Ministry of Micro, Small & Medium Enterprises (MSMEs) is in advanced talks with investors to raise USD 25 to 40 million as part of series C funding by the end of the current financial year. The funding will be utilized in expanding the business to provide financial services to MSME sector in India.

Aye finance is in the business of providing credit to MSME sector in tier II cities and beyond and is currently serving over 50 clusters in states likes Madhya Pradesh, Andhra Pradesh, Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab, Uttarakhand , Tamil Nadu and Karnataka. It uses cluster methodology to assess the credit worthiness of the small scale enterprises.

Aye Finance founder Sanjay Sharma said that the company has signed non-disclosure agreements with several private equity funds based out of US, Europe and India and the challenges faced by MSME sector in procuring funds  to fuel their growth are being successfully addressed by the company.

The company has earlier  raised around Rs 150 in debt from companies including  Mahindra & Mahindra, Hinduja Leyland Finance, Blue Orchard and Triodos Investment Management and and State bank of India (SBI). (KNN/AG)