CapitalG, With growing capital, Alphabet doubles its stakes on the Indian company Aye Finance, which operates a digital lending platform for small businesses.
On Wednesday, a startup from Gurgaon said he raised $ 27.5 million. The United States as part of its Series E funding round, which was hosted by CapitalG, who also led one of its previous rounds. Existing investors LGT Lightstone, Falcon Edge Capital, A91 Partners, and MAJ Invest also took part in the round, which has so far brought the six-year-old Indian startup equity fund to $ 91 million. According to regulatory documentation, Ai Finance currently valued at more than $ 250 million.
Ai Finance Serves small businesses that need working capital, but find it difficult or impossible to secure it from traditional lenders such as banks. The startup said that over the years, it has allocated nearly 400 million dollars.
Cutting checks to small enterprises for which banks will not issue funds is risky. Aye Finance, like many startups in South Asia such as Lendingkart, Capital Float, Indifi Technologies and InCred, says it uses statistical models and predictive analytics to determine borrowers’ creditworthiness.
The startup said it helped more than 200,000 unorganized companies switch to the formal credit ecosystem.
Sumiran Das, a partner at CapitalG and a member of the board of directors of Aye Finance, said the startup uses a “data science with a physical presence in the field,” and its underwriting methodology allows it to lead the market and use demographic data unchanged.
Sanjay Sharma, Managing Director of Aye Finance, said they managed to close a large round of financing in the midst of a global pandemic “Enhances the value that our investors see in Aye Finance.”
“Hard times are a real test for a good lender, and we have already begun to show significant improvements in payments to customers in recent months,” he said, adding that Aye Finance managed to get more money than needed, so that it has some financial cushion to deal with a pandemic.
The startup, which suspended the issuance of capital to enterprises in March, said it plans to resume lending to small amounts of money to enterprises starting next month to help them resume their activities. In late March, New Delhi announced a closure across the country, which forced most businesses to work halfway.