By Sharon Lewis and Reethu Ravi This article is the first of a four-part Tech’s Year in Review series reviewing developments across industries in 2020. This first installation discusses some industries spotlighted by the COVID-19 pandemic, namely edtech, logistics and supply chains, fintech, [...]
Vivriti Capital’s enterprise debt platform CredAvenue has facilitated debt processing of over US$4 billion since its inception in 2017
Enterprise debt and asset management startup Vivriti Capital has raised approximately US$13.5 million (INR 100 crores) in its Series B extension round led by U.S.-based Creation Investments Capital Management, the startup announced in a press release yesterday.
Vivriti had previously raised $50 million (INR 350 crores) from private equity (PE) firm LGT Lightstone’s India wing, LGT Lightstone Aspada, in its first Series B tranche in March this year. With the latest financing, Vivriti’s total haul to date exceeds $102 million (INR 760 crores), according to the press release.
The fresh capital injection will be utilized to strengthen Vivriti’s technological and analytical capabilities, and ramp up its new platforms launched specifically for co-lending, supply chain management and financing, Vivriti Founders and Managing Directors Gaurav Kumar and Vineet Sukumar said in the statement.
The fresh funds will also be utilized to set up and launch unique funds for Vivriti’s asset management business, spanning from BBB to AAA fixed income funds, they added.
Founded in 2017, the Vivriti Group owns and operates CredAvenue, an online enterprise debt platform, and Vivriti Asset Management (VAM), an alternative investments fund management platform focused on fixed income. VAM has completed the first close of its maiden fund, Samarth Bond Fund with AA+ rating from CRISIL in March, and is expected to launch four more funds next year, the startup said.
CredAvenue, on the other hand, was designed with the aim to transform debt markets through technology led solutions that effectively connect lenders and investors.
According to the startup, the platform is deepening the debt market space in India to make it more inclusive by providing transparent price discovery, addressing information asymmetry, and bridging the gap between perceived and actual risk.
According to a PwC report, micro, small and medium enterprises (MSMEs) lack access to formal credit facilities, with only 10% of businesses having access to formal credit. Moreover, World Bank data suggests only 10% of Indians have access to formal credit facilities, the report adds.
“In just over three years, CredAvenue has emerged as the leading platform for enterprise debt and in many ways is redefining the debt and structured finance space in India,” the founders added. “We have a significant first mover advantage in this space and the opportunity ahead is galactic.”
According to a report by Market Insights, the fintech market in India is projected to grow at a rate of 22.7% and exceed $83.8 billion in value by 2025.
Moreover, India, along with China, has a fintech adoption rate of 87%, compared to the global average fintech adoption rate of 64%, the report adds. This indicates a massive opportunity for Indian fintech startups, especially in the lending and asset management space.
According to the statement, CredAvenue has over 120 institutional investors, more than 260 enterprise clients, over 5 lakh individual and SME borrowers, and has facilitated lending of over $4 billion (INR 30,000 crores) to date.
Commenting on the funding, Creation Investments Director Tyler Day said, “Vivriti is uniquely placed in the Indian ecosystem as a lender and facilitator of debt in the impact space with their unparalleled technology platform, strong management team and comprehensive product offerings.”
“The macro- environment in the last six months brought out the potential of Vivriti’s marketplace, through which they facilitated debt raise for a large number of clients as well as helped investors in their due diligence and deal executions,” he added.
Creation Investments, who had participated in Vivriti’s Series A funding round in March last year, is a global impact investment management firm focussing on PE investments in the financial services industry, the statement noted.
The firm manages over $625 million in private funds and has invested over $250 million in India, one of its key focus countries, across 10 companies, 8 of which are current investments, the statement added.
Header image by Nattanan Kanchanaprat from Pixabay