It’s little surprise that CapitalG, the venture capital fund of search giant Google’s parent company Alphabet Inc, makes tech bets. The late-stage growth VC’s first investment in India was in Freshworks in 2015, a company born in the cloud. Then it invested in Practo, an online healthcare platform, CommonFloor, a real estate platform. And then car portal CarDekho. Companies that believed in an online model for the lifecycle of their product or service.
Back in style
For Alphabet’s CapitalG, offline lending is back in vogue
The investment arm of Alphabet Inc made a counter-intuitive choice by funding Aye Finance. As its first fintech bet in India, it picked a business that relies on the traditional brick and mortar form of lending. What gives?
When digital lending is all the rage, Aye Finance does business through physical branches
Digital-first VC CapitalG (formerly Google Capital) believes Aye’s model is the best way to reach small businesses
It has invested about $10 million in Aye Finance, its first fintech bet in India
CapitalG’s move is the clearest sign yet that offline lending is making a comeback and omnichannel lending is here to stay