Non-banking financial company AYE Finance has raised Rs 147 crore (USD 21.5 million) in a series C equity funding from CaptialG and existing investors to fund its business growth.
Apart from CaptialG (formerly Google Capital), the existing investors SAIF Partners and LGT have infused equity in this round of funding, the company said in a statement.
"AYE will be using these funds to fuel business growth and maintain the lead in its financial technology," it said.
Sanjay Sharma, Founder and Managing Director, AYE said, "We are very excited about our partnership with CapitalG. We have used insightful data models and technology to provide affordable business loans to the financially excluded micro enterprises across India. CapitalG's access to Google expertise in scaling businesses using analytics and technology will strongly supplement our approach."
The company said it aims to cover the large unaddressed micro, small and medium Enterprises (MSME) finance market that other finance providers have found difficult to service.
"MSMEs form the backbone of the Indian economy and contribute a large portion of its GDP, however, they lack access to formal credit. We look forward to working with AYE and helping them use technology to address under penetrated segments of the MSME credit market," said Kaushik Anand, India Head, CapitalG.
AYE Finance said it is focussed on solving the financing needs of micro enterprises that have so far relied only on informal sources of funding like money lenders or chit funds.
The company provides innovative working capital and business development loans to underserved micro and small enterprises using a unique cluster-based approach, supported by a proprietary underwriting methodology.
The company's operations are spread across 72 branches in 10 states.
The Gurgaon-based firm has in the first four years deployed over 60,000 loans to micro enterprise owners across India and enabled them to grow their businesses, AYE Finance said.
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