Aye Finance Secures $37M Funding From British International Investment


Aye Finance, an Indian startup specializing in providing digital lending services to small businesses, has successfully raised $37.18 million in a recent funding round. This investment, led by British International Investment, is a significant milestone for the company as it aims to further support micro-enterprises in expanding their businesses and increasing their employees’ incomes.

Key Takeaway

Aye Finance has secured $37.18 million in funding led by British International Investment, further enabling the company to support micro-enterprises and contribute to financial inclusion for India’s underserved groups.

Series F Funding Round

The Series F round marks a substantial achievement for Aye Finance, bringing its total fundraising to nearly $200 million. The funding round also saw the participation of Waterfield Fund of Funds and the startup’s existing investor A91 Partners. Notably, in 2020, the company raised $27.5 million in its Series E funding round, with Alphabet’s CapitalG leading the investment.

Empowering Micro-Enterprises

Established in 2014, Aye Finance offers business loans in various forms, including mortgage, hypothecation, and term credit, to underserved micro-enterprises. These businesses often struggle to secure working capital from traditional lenders such as banks. Leveraging its in-house technology and analytics, the startup provides a diverse range of financial solutions tailored to the specific needs of these enterprises.

Impact and Market Position

Aye Finance has disbursed over $959 million of credit to more than 700,000 unorganized businesses. The company competes with other players in the industry, such as Capital Float, Lendingkart, and Indifi, all of which are dedicated to offering credit to small enterprises in India.

Addressing Credit Challenges

India is home to over 63 million micro, small, and medium-sized businesses, which play a significant role in the country’s economic landscape. Despite their substantial contribution, many of these businesses face challenges in accessing credit. Aye Finance and similar startups are bridging this gap by providing accessible credit through their platforms, addressing the specific needs of these underserved businesses.

Future Growth and Vision

Sanjay Sharma, co-founder, MD, and CEO of Aye Finance, expressed confidence in the immense potential of lending to underserved micro-enterprises. The recent capital infusion is expected to propel the company’s growth trajectory, further solidifying its position in the market.

Commitment to Financial Inclusion

Gaurav Malhotra, Director for Financial Services at British International Investment, emphasized the organization’s commitment to supporting companies with a strong development impact philosophy. The investment in Aye Finance reflects the shared vision of promoting financial inclusion for India’s underserved groups through innovative and scalable financing solutions.

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