India: Aye Finance raises $8m via NCDs from impact investor Blue Orchard

By Ishita Russell

May 25, 2017

Non-banking finance company Aye Finance has raised $8 million from global impact investment manager Blue Orchard in the form of non-convertible debentures with a maturity period of five years.

The announcement comes close on the heels of the the Gurgaon-based lender raising $3 million debt funding from State Bank of India. Prior to that in November last year it had raised $10 million (Rs 70 Crore) in Series B equity round led by LGT Impact Ventures,  SAIF Partners and Accion.

Founded by professional bankers Sanjay Sharma and Vikram Jetley in 2014, Aye Finance, which serves MSME sector through a network of 39 branches.  It provides loans between Rs 50,000 and Rs 25 lakh to micro and small enterprises.

“Aye Finance distinguishes itself by utilizing technology in mitigating the challenges faced by MSMEs in securing loans. By deploying a cloud-computing architecture and data science methods to derive insights about each of our industry clusters, we are able to bring down the cost of delivery and offer credit solutions at affordable rates to the micro and small enterprises,” said Sanjay Sharma, Managing Director, Aye Finance.

“These additional funds from Blue Orchard will be utilised to further strengthen our funding position and allow us to facilitate the inclusion of a larger number of micro and small businesses in the realm of mainstream economy,” he added.

Swiss investor Blue Orchard was founded in 2001 by initiative of the UN as the first commercial manager of microfinance debt investments worldwide. They offer premium investment solutions to qualified investors and provide debt and equity financing to institutions in emerging and frontier markets.

In 2015, Blue Orchard had also invested $8 million through NCDs in Delhi-based mircolender SV Creditline Ltd.

Financial services space continues to be an attractive bet for investors, especially the ones targeting the underserved smaller businesses and economically weaker sections of the society.

Last month, International Finance Corp  proposed to invest upto $100 million to Mumbai-headquartered NBFC Fullerton India Credit Company Ltd (FICCL), a unit of Temasek Holdings. In March, IFC also extended a $20 million to Guwahati-based RGVN (North East) Microfinance Ltd in the form of a senior debt investment.

Also Read:

India Dealbook: Chymera VR, Lucideus & Aye Finance raise funding

India: Aye Finance raises $10m led by LGT Impact Ventures

India: Aye Finance secures $3m from Accion and SAIF Partners

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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