Provides venture debt financing to leading Indian start-ups including CredR, Shadowfax, Suburban, ZopNow & Voonik
InnoVen Capital, India’s first and largest venture debt and speciality lending business has closed venture debt transactions worth over $13 MM with a number of leading Indian startups, including diagnostic chain – Suburban Diagnostics, personalisation-focused fashion marketplace – Voonik, hyperlocal grocery delivery service – Zopnow, used vehicles marketplace – Credr, and on-demand logistics provider – Shadowfax.
Some of the existing portfolio companies that have raised further rounds of venture debt funding are cloud software solutions company Capillary Technologies, mobile ad-tech venture Affle, and Ed tech firm –Byju’s.
Earlier this year, InnoVenhad announced disbursal of over Rs. 275 crore across 27 debt transactions in 2015. It witnessed a massive 100% growth over the previous year in terms of number of clients and loan volumes. This year, InnoVen Capital aims to provide fresh funding in excess of $65 million.In addition, the platform also recently funded its debut deals in the South Asia region outside India, in Malaysia and Thailand.
InnoVen Capital continuously leverages its network and association with the early stage ecosystem for knowledge sharing initiatives. Speaking on the announcement,Vinod Murali,Managing Director India said, “While the focus for most entrepreneurs has shifted to preserving capital and improving unit economics to demonstrate better operating efficiencies, it is important for companies to have the ability to still experiment and test their hypotheses on solving various problems as part of their growth lifecycle. Venture debt provides them with additional firepower to build over and above the base case without the effect of additional equity dilution. In some instances, founders have also taken venture debt to ensure they have sufficient runway extension so that they can go to market from a position of strength.”
Venture debt is specialty debt financing available to VC backed companies that have typically raised at least $3 and $5 million or more in funding from reputed Venture Capital investors.