Aye Finance Raises $10.3M to Supply Micro-Loans

Aye Finance Raises $10.3M to Supply Micro-Loans

Considering that Aye Finance has not been in the market for long, it seems to be doing more than some of its competitors. Lately, they have been able

Alibaba`s Ant Financial To Expand In Indonesia
European Commission Proposes A Pilot To Improve Blockchain Regulation
MAS Inks A FinTech Cooperation Agreement

Considering that Aye Finance has not been in the market for long, it seems to be doing more than some of its competitors. Lately, they have been able to acquire $10.3M that they intend to use to help companies in India that are in need of financial assistance. This is in addition to the contribution of their current investors, SAIF Partners and Accion who also contribute towards the project. This comes as great news to the various upcoming businesses and companies that are still trying to get themselves together financially. The main purpose for participating in this project according to its founders, Sanjay Sharma and Vikram Jetley, is to help entrepreneurs in India get on their feet. Being former bankers, they have the experience needed to handle this project. Furthermore, they understand that the standards put up by banks and financial institutions offering micro-loans may be too high for most of their customers.

During a recent interview, Sharma was requested to explain how the system works and how they are able to easily offer these loans to their customers and at the same time, keep their business afloat. In his response, Sharma said that on average, Aye Finance gives out loans ranging between 200,000-300,000 INR which is about $2,900-$4,400 and they mostly target business owners who are basically surviving on what they make from their business.

Another point of contention was on how Aye Finance is able to identify which businesses to give loans to and how they are assured that they will be able to pay it back. Sharma was of the same opinion that indeed that was quite a challenge to the startup company that was trying to bring a difference to the business industry. Aye Finance had, however, found a way to counter this trial by opening several branches in the country making the company more accessible to the residents. Additionally, they had several agents in different regions to link them with potential customers. Once there is an agreement, all the necessary fiscal information of the involved entity is uploaded onto a digital cloud. When this happens, the customer’s enterprise is grouped into one of the industry clusters which evaluates it based on a number of factors. All this depends on what that specific industry entails.

For Aye Finance to open up a new branch, it needs to have about 1,000 registered customers in that region. This may, however, vary as some regions have more potential in business than others. When asked about the future plans of the company, Sharma was quite optimistic that Aye Finance will make a huge break-through before the onset of the year 2018.

As a parting shot, Sharma assured business owners in need of financial assistance that they would be able to get help from them. Moreover, they would get help in marketing if they were enthusiastic and passionate about their ventures just like the staff at Aye Finance was. He even added that they would go the extra mile for some of the businesses and companies by linking them with contacts in Delhi where they would be able to expand and grow.

COMMENTS