Aye Finance, the Indian lending tech startup, has successfully concluded a Series F funding round, securing a total of INR 310 crore. The round was led by British International Investment (BII), with active participation from Waterfield Fund of Funds and A91 Partners, an existing shareholder. The funding follows Aye Finance’s Series E round in June 2020, where it raised INR 210 crore. Aye Finance, founded in 2014 by Sanjay Sharma and Vikram Jetley, specializes in offering affordable business loans to microenterprises in India. The company utilizes AI algorithms for cluster-based credit assessments, enabling risk evaluation in the absence of traditional business documents.

The funds from this round are earmarked to fortify Aye Finance’s lending portfolio, support its lending book, and fuel the expansion of its branch network. Despite recently securing over INR 550 crore in debt funding, the company maintains a robust debt-to-equity ratio, positioning it favorably for additional equity funding if needed. Currently operating 395 branches across India, Aye Finance plans to open an additional 80 branches in the fiscal year 2024.

Aye Finance’s business metrics highlight its strong performance, with a gross NPA of 2.5%, well below the RBI’s sub-target of 7.5% for MSME lending. The company boasts over INR 3,600 crore in assets under management and reported a profit after tax of INR 80 crore in the first half of FY24. The funding round signifies a strategic move for Aye Finance as it continues to make significant strides in the competitive lending tech sector, facing competition from players like Lendingkart and FlexiLoans.

That’s fantastic news about Aye Finance! Securing INR 310 crore in their Series F funding round is a major achievement. It’s impressive to see how they’re using AI algorithms to assess credit risk for microenterprises and provide affordable business loans. With their strong performance metrics and expansion plans, Aye Finance is definitely making a mark in the lending tech sector. 

~ Dr Shishir said Gupta founder & CEO of StartupLanes 

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