The loan provider for small and macro businesses, Aye Finance has raised almost $3 Million in follow on investment from Accion International. The company will use the fund to expand its business and offerings to broader geography. Accion International is a nonprofit global organization, which supports micro finance institution to give them financial services to low-income clients, and SAIF Partners.
The micro, small and medium enterprise sector in India is very big and has about 58 Million businesses. This sector creates almost 150 Million jobs and compromise 45 per cent of industrial output of the nation. Aye Finance is trying to bridge the gap between the traditional micro finance lenders and traditional banks.
The startup has built a new industry Cluster Enablement model for lending, which according to the company will help the Indian MSMEs to get the capital for growing their businesses. Currently, it is eyeing the north India, where there are lots of micro and small businesses.
The financial sector of India is labeled as one of the top spot in near future. Recently, Paytm has also partnered with a number of financial institutions to start lending money to individuals and small businesses. India has a very good MSMEs market, as almost 60 per cent of its population is unbanked and 90 percent if SMEs don’t have access to the formal financial institutions.