Aye Finance raises Rs 20 crore from Accion, SAIF Partners

NEW DELHI: Small business lender Aye Finance today said it has raised Rs 20 crore in follow-on investments from Accion and SAIF Partners.

These new investments will help the financial services startup provide India's micro and small enterprises (MSMEs) with expanded access to financing, Aye Finance said in a statement.

Through use of technology, credit assessments and a new 'Industry Cluster Enablement' (ICE) model of lending, Aye Finance helps India's MSMEs meet working capital and capex requirements as they look to grow their businesses, it added.

Aye Finance has already raised debt funds from a group of funding organizations like IFMR, Intellegrow, MAS Financial Services and a number of banks.

Both Accion and SAIF Partners will assist Aye Finance strengthen its existing operating base by refining its underwriting processes and risk analysis, improving data analytics, assisting with product development, and encouraging broader industry engagement.

In its second year of operations, Aye Finance has expanded to 16 cities across northern India and plans to continue expanding in the coming year, the statement said.

The company leverages cloud-based automation to minimise operating costs while keeping robust controls on the field. The low operating costs are expected to make the company to break even in its third year of operations.