Gurugram-based, Microlending platform Aye Finance, on Monday said it has raised $21.5 million in its Series C round led by CapitalG, the venture capital fund owned by Alphabet Inc.
Existing investors SAIF Partners and LGT also participated in the new round.
Founded in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance is a non-banking financial company (NBFC) that provides mortgage, hypothecation, and term loan services to micro, small and medium enterprises (MSMEs). It has 72 branches in 10 states across India.
With more than 72 branches across 10 states in North and South India, the startup claims to have disbursed Rs 700 crore to more than 60,000 customers since its inception. Besides, it also claims to have around Rs 350 crore in assets under management (AUM).
“CapitalG’s access to Google expertise in scaling businesses using analytics and technology will strongly supplement our approach. We intend to cover the large unaddressed MSME finance market that other finance providers have found difficult to service,” said Sanjay Sharma, managing director, Aye Finance in a statement.
“MSMEs form the backbone of the Indian economy and contribute a large portion of its GDP. However, they lack access to formal credit. Over the last few years, Aye has proven that their model is one of the most efficient ways to deliver credit to underserved MSMEs across industry clusters,” said Kaushik Anand, India head at CapitalG.
CapitalG invests in people who are passionate about using technology to change the way we live and companies that are harnessing the technologies of tomorrow.