· The company expects to double its new loan commitments to $50 million in next 12-15 months
· The Indian venture debt market could cross USD 1 billion on a cumulative basis in the next 5-7 years
New Delhi, May 27, 2015: InnoVen Capital India, which was recently acquired by Singapore-based Temasek Holdings has announced that it has closed venture debt financing to eight high-growth companies in the first four months of 2015. The companies funded include Capillary Technologies, Collectabillia.com, eShakti.com, Faasos, Greendust, Power2SME, Practo Technologies, and Zoomcar. As the debt from InnoVen Capital is typically used for general corporate purposes, these funds will be used to meet a number of uses including product improvements, expansion into newer geographies, recruiting key management personnel and funding acquisitions. The company expects to double its new loan commitments to $50 million in next 12-15 months.
Venture debt supplements the funding raised by disruptive companies by providing an additional layer of capital along with the equity funding raised from VC funds. This alternative form of capital structured to minimize dilution allows entrepreneurs to achieve milestones and potentially higher valuations for their companies by extending cash runway. InnoVen Capital which is India’s largest venture debt company believes that the Indian venture debt market has the potential to cross USD 1 billion on a cumulative basis in the next five to seven years, keeping pace with the growth and maturity of the venture ecosystem.
"This is a very exciting time for our platform in India," said Mr. Ajay Hattangdi, CEO and Managing Director, InnoVen Capital. "Over the years, venture debt is becoming a more accepted and critical part of a company's financing mix as entrepreneurs understand its role and benefits alongside that of venture capital. We will continue to work with our VC partners in thoughtfully and strategically expanding our operations while deploying capital in a responsible manner."
InnoVen Capital India, an NBFC formerly known as SVB India Finance Private Limited, is among the most experienced and trusted providers of venture debt in the country, having made loan commitments of almost Rs.700 crores across nearly 80 transactions since starting operations in India in late-2008.
InnoVen Capital works with more than 30 VC partners including Sequoia, IDG, Norwest, Kalaari Capital, Accel Partners, NEA, Helion, SAIF Partners, Mayfield, LightBox, etc. in lending to their portfolio companies.
InnoVen Capital is sector-agnostic and lends to early/growth stage companies across sectors and stages. Some of the other innovative companies funded by InnoVen Capital include Freecharge, Manthan, Prizm Payments, Snapdeal and Yatra.
For more information on InnoVen Capital India, please visit www.innovencapital.com and follow them on Twitter at @InnoVenCap_IN