Aye Finance, a startup which provides loans to small and medium sized enterprises, has raised Rs 10 crore recently by selling part of its SME loan portfolio to Mahindra & Mahindra Financial Services. The deal was also facilitated by IFMR Capital.


What is securitisation?        

Securitisation is a fund raising instrument which essentially involves creating a bond that earns interest from the cash flow coming from an asset. In Aye’s these are the loans worth Rs 10 crore which get regular repayments from borrowers. The rate of interest issued to the bondholders will be less than 12%.


What the MD has to say
Sanjay Sharma, MD of Aye Finance said “Securitisation is a very transparent and cost-efficient fundraising option which is not very popular in India but in markets like the US, where it is much more popular than getting direct loans from a third party“ .


Other Investments

Aye Finance is supported by SAIF Partners and Accion has raised $8 million from Blue Orchard and $3.1 from SBI.

They stated that the funds raised will be used for providing loans to MSMEs (Micro, small and medium industries).

Leave a Reply



That answer every ifs and buts of digital marketing

Stay ahead with deeper understanding of the trends and up-to-date marketing tactics; all tried & tested in the ever-growing digital space.

Looking to
Achieve your Goals?

Let us help you
get there!

We're a digital agency focused on
creative and results-driven solutions.

Start With
Submit Form Below