Aye Finance, an India-based provider of loans to small businesses, has raised $21.5m through its Series C funding.
The round was led by CapitalG, the venture capital fund owned by Alphabet, with participation form existing investors SAIF Partners and LGT.
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 provides working capital and business development loans to micro and small enterprises using a cluster-based approach, supported by a proprietary underwriting methodology.
The company claims to use Aye data models and technology to provide affordable business loans to micro enterprises across India, operating in 10 states and through over 70 branches.
“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 Sharma in a statement.
Last year, AYE Finance has secured a $3m credit line from public lender the State Bank of India. Four months later the lender raised 440m rupees ($6.2m) of debt from Triodos Bank’s asset management arm.
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