Aye Finance raises Rs 70 crore in debt from BlueOrchard

BENGALURU: Aye Finance, a Gurgaon-based digital lending startup for small and medium businesses, has raised Rs 70 crore in debt funding from social impact fund BlueOrchard to help expand to newer geographies in the hinterland and disburse more actively to its existing borrower base.

With this, the total amount of funds raised by Aye Finance in both equity and debt has increased to almost Rs 1,000 crore. It’s backed by CapitalG (erstwhile Google Capital), SAIF Partners and LGT among others.

“We would like to close the year with a loan book of more than Rs 900 crore,” said Sanjay Sharma, managing director at Aye Finance. “At the same time, we are determined to grow our last-mile presence across the hinterlands of India, while coming to the financial aid of the MSMEs.”


Aye Finance said it’s trying innovative means to reach out to small businesses that were otherwise not funded by traditional lenders. “We have innovatively adopted the industry clusters methodology and behavioural psychometrics, which help us gauge both the payment ability and intent of micro-entrepreneurs, thus helping us keep NPAs under control,” said Sharma.