Mumbai: Aye Finance, which lends money to small businesses, said on Monday that it had raised funding from SAIF Partners and Accion International. The amount raised was not disclosed.

Accion, which invests in mocrofinance institutions, made its investment through Venture Lab, a $10 million fund dedicated to providing seed capital and management support to innovative startups.

“MSMEs (micro, small and medium enterprises) represent a highly underserved missing middle market in India. Aye Finance will address that missing middle, providing borrowers with the capital that all businesses need," Michael Schlein, chief executive officer with Accion, said in a statement.

Aye Finance was founded by Sanjay Sharma and Vikram Jetley in 2014.

The debt gap for MSMEs in India is estimated to be $198 billion, and is increasing at 11%, according to a report by Intellecap and the International Finance Corporation.

“We offer much-needed loans and financing to micro-businesses through our insightful, segmented origination processes. Our use of new-age mobile and cloud computing lowers the delivery cost and our understanding of industry segments continue to attract a rapidly growing and loyal customer base, " said Sharma, managing director and co-founder, Aye Finance.

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