Mahindra & Mahindra Financial Services has bought a part of Aye Finance’s, non-banking finance company (NBFC) licensed by RBI, portfolio under a securitisation deal. The financial terms of the deal were not disclosed.
Through this deal, which was facilitated by IFMR Capital, Aye has further diversified its funding sources, having raised money last year through equity and more recently through debt from India’s biggest PSU Bank SBI and a leading global impact investment manager, Blue Orchard.
Aye Finance is headquartered in Gurgaon and serves the credit worthy albeit the underserved MSME sector through a network of 67 branches in 10 Indian states. Founded by career bankers Sanjay Sharma and Vikram Jetley in 2014, Aye has disbursed more than Rs. 200 crore in loans and has enabled the financial inclusion of over 20,000 micro and small businesses.
“In the Year 2017 we will hit key business milestones, increasing our footprint and loan book to three times the size. As our business expands, we will be looking at diversified ways of raising funds. These additional funds have been raised on the backing of our robust underwriting and sound portfolio. By securitising part of our loan book, we free up capital which in turn improves our capital adequacy,” said Sanjay Sharma, Managing Director and Co-Founder, Aye Finance.