CapitalG, the growth equity arm of Alphabet, is doubling down on its bet on Aye Finance, an Indian start-up that operates a digital loaning platform for small companies. On Wednesday, the Gurgaon-based start-up said it had actually raised $27.5 million in its Series E financing round led by CapitalG, which has actually likewise led one of its previous rounds. Existing investors LGT Lightstone, Falcon Edge Capital, A91 Partners and MAJ Invest also participated in the round, which brings the six-year-old Indian start-up’s to-date equity financing to $91 million. According to a regulative filing,
Aye Financing is now valued at over$ 250 million. Aye Finance caters to small businesses that require working capital however find it tough or impossible to protect that from traditional lending institutions, such as banks. The start-up said it had paid out nearly $400 million to these services throughout the years.
Cutting checks to small businesses that banks won’t release funds to is dangerous. Aye Financing, like ratings of startups in South Asia such as Lendingkart, Capital Float, Indifi Technologies and InCred, says it makes use of predictive analytics and analytical designs to determine the credit worthiness of borrowers.
The start-up said it has helped more than 200,000 messy companies to relocate to the formal lending community.
Sumiran Das, a partner at CapitalG and who also sits on Aye Financing’s board, stated the start-up’s usage of “data science with physical presence in the field” and its underwriting method has placed it to lead the marketplace and tap the unaddressed demographic.
Sanjay Sharma, managing director at Aye Financing, stated that the reality they have been able to close a major funding round at the height of a worldwide pandemic “strengthens the worth that our financiers see in Aye Finance.”
“Tough times are a real test of an excellent lending institution and we have actually already started showing substantial improvements in the customer payments in the past months,” he stated, adding that Aye Finance has actually been able to protect more money than it needed to so that it has some monetary cushion to steer through the pandemic.
The start-up, which suspended paying out capital to services in March, stated it plans to resume lending little quantities of money to services beginning next month to assist them reboot their operations. New Delhi announced an across the country lockdown in late March, which required most services to half their operations.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.