Gurgaon-based AYE Finance Pvt. Ltd, which lends to micro and small enterprises, has secured a credit line of Rs 20 crore (around $3 million) from public sector lender State Bank of India, a company statement said.
The non-banking financial company (NBFC) will use the funds to ensure financial inclusion for small businesses, the statement added.
“While the MSME sector continues to be under-served, we believe it holds a lot of promise for growth, development and job creation. These funds will allow us to reach out to micro and small enterprises and provide them with the much-required line of credit,” said Sanjay Sharma, co-founder and managing director of AYE Finance.
The company was founded in 2014 by Sharma and Vikram, former executives at micro-finance institution Ujjivan Financial Services. It provides working capital loans in the range of Rs 50,000 to Rs 25 lakh to micro and small enterprises. The company's operations are spread across 33 branches in seven states, and it has catered to more than 250,000 borrowers so far.
In November 2016, AYE Finance closed its Series B funding round at $10 million (Rs 70 crore) led by Zurich-based LGT Impact Ventures and existing investors SAIF Partners and non-profit organisation Accion.
In December 2015, the NBFC had secured Rs 20 crore (around $3 million) in follow-on investments from SAIF Partners and Accion and, in February 2015, the two investors co-invested an undisclosed amount in the firm.
In April 2014, early-stage impact investment firm Contrarian Drishti Partners, along with its founder Somak Ghosh, invested an undisclosed amount in the company.
Like this report? Sign up for our daily newsletter to get our top reports.