MSME lender, Aye Finance on Tuesday announced its debt fund raise of Rs 180 crore over a period of 15 days from lenders in India and aborad.
The fund raise has come during India being in a 3-week lockdown which has severely impacted the economic activity and caused wide-spread disruption to MSMEs, Micro enterprises and other businesses which are key portfolios of the lender.
The lender has planned to use the funds to address the credit requirements of the micro enterprises which will support them during the financial crisis at the same time it has passed on the 3 month moratorium relief to its 2 lakh customers as per RBI’s relaxation of norms for EMI deferment under Covid-19 regulatory package.
Sanjay Sharma, Managing Director of Aye Finance said, ” Our credibility in repayments and the milestones Aye has achieved has given our debt providers considerable comfort and confidence. Our ability to raise money even in these testing times is testament to that.”
Aye Finance provides fixed and working capital requirements relying on its underwriting which does risk selection on cluster data by leveraging machine learning algorithms.
Aye Finance has till date disbursed loans worth over Rs 2900 crores and is backed by equity investors like Alphabet Inc owned CapitalG and SAIF Partners; whilst lenders SBI, HDFC Bank have also extended debt lines for on-lending to Aye Finance.
As of March 2020, the lender has covered 5,500 pin codes across the country and intends to add 2000 more by FY21.