Sanjay Sharma, MD & CEO of Aye Finance, expressed his satisfaction over the funding milestone and stressed that the capital infusion will primarily go towards growing the company’s lending operations. “We are quite satisfied with the fundraising for now. We have enough with what we have. While a small portion of the money we raised is going towards upgrading our technology and platforms, the bulk of it will go towards growing our portfolio. We are in the lending business, so cash is our working capital,” Sharma said.
Aye Finance’s performance over the past year was marked by significant growth in profitability. The company’s net profit increased from Rs 570 crore in FY23 to Rs 161 crore in FY24, an increase of almost threefold. Sharma attributed this success to improved operational efficiency that has emerged post-COVID. “While the team has not grown much, the business has. And I think that is what is driving a big positive jump in earnings. We hope to maintain that trajectory next year,” he added.
In a separate development, employee healthcare platform Onsurity has successfully secured $45 million in a Series B funding round led by Creaegis, with participation from existing investors.
The insurtech startup plans to leverage this new capital to launch new digital offerings, improve its technological infrastructure and develop fully digital products.
Aiming for significant growth, Onsurity aims to partner with over 50,000 businesses and provide coverage to over 5 million customers by 2026.
Yogesh Agarwal, founder and CEO of Onsurity, said the bulk of the capital will go towards developing the technology infrastructure, streamlining claims processes and improving the product range. He noted that 95% of Indian SMEs currently lack adequate insurance coverage for their businesses and employees, and the company aims to change that by expanding its distribution and marketing efforts.
Onsurity’s growth has been driven by offering affordable subscription-based products tailored for SMEs, allowing businesses to pay for employee health and wellness benefits on a monthly basis. Agarwal highlighted that the company’s digital approach has made the entire process simple for its customers. “As it is monthly, it is very affordable. There is no paperwork or complex declarations, making it easy to onboard 8,000-9,000 customers. Now, we are focusing on improving the claims experience as it is core to our brand promise,” he explained.
As part of its growth strategy, Onsurity is expanding its distribution network to reach out to SMEs in Tier II and Tier III cities, and is forming strategic alliances with non-banking financial companies (NBFCs) and banks to offer its products through their networks. The company is also launching innovative product lines, such as its recently launched cyberSure product, which protects businesses and employees from digital theft and cyberattacks. Onsurity aims to grow this product line to 1 million users by the end of the next fiscal year and expand it 5-6 times by FY2026.
Looking ahead, Onsurity’s vision is to reach 50,000 SMEs and a member base of 5 million by 2026. According to Agarwal, the company’s digital focus will be a key driver of this growth. “The SMEs we target are accustomed to digital channels, which will help us scale. Our partnerships with NBFCs and banks will also be instrumental in reaching out to our target user base and SME customers,” he concluded.
Additionally, Way2News, a hyperlocal news platform, has raised $14 million in Series B funding, with Westbridge Capital leading the round and venture capitalist Sashi Reddi also participating. In an interview with CNBC-TV18, Raju Vanapala, founder and CEO of Way2News, shared that the fresh capital will go towards expanding the platform’s presence in South India and enhancing its technology infrastructure.
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