Online enterprise debt platform and lender Vivriti Capital has raised Rs 350 crore in Series B round from LGT Lightstone Aspada.
The latest round of funding takes the total equity raised by the start-up to $100 million. The company would use the fresh fund to expand technology and data science capability in all three lines of business- its online lending marketplace, non banking finance company (NBFC) and fund management.
Avendus Capital was the sole financial advisor for this deal.
“We have achieved unprecedented scale in a tough market. We’re issuers as well as providers of capital and will use the fresh funds to scale up our technological and data science capabilities by March 2021. We will also scale up our NBFC,” said Gaurav Kumar, founder and managing director at Viviriti Capital.
“We are excited to back the team at Vivriti in helping build India’s largest debt platform. Over the last few years, we have tracked their progress keenly and have been impressed by the quality of execution. We believe that the combination of their tech platform and strong product development capabilities bring much needed innovation in the space towards expanding the supply of ‘rightly priced’ debt to high impact businesses,” said Kartik Srivatsa, managing partner of LGT Lightstone Aspada.
Founded by Kumar and Vineet Sukumar in 2017, Vivriti owns a proprietary enterprise debt deal and value discovery online platform called CredAvenue. The tech enabled platform connects debt issuers and investors in an efficient manner, offers credit underwriting solutions, analytical models, structuring solutions and automated execution workflows.
With the mission to scale up the Indian debt capital, the platform today counts over 2,000 users. CredAvenue, since inception has facilitated deal flows of over Rs 25,000 crore. Major banks, NBFCs, small finance banks, mutual fund houses, development finance institutions and family offices constitute the key participants on the platform.
Kumar said disbursals from the marketplace are expected to close at around ~35,000 crore by March 31, 2020.
Given the ongoing disruption of business due to coronavirus, Kumar said the next few months would be critical and slightly tough to raise capital. However, he sees a greater mid-term impact if the situation lasts for a longer period.
However, Kumar is not worried about the loans the company provides, except for some players in particular verticals. “We do not work with informal MSMEs (micro, small and medium enterprises), and Ebitda negative firms. We’re in a wait and watch mode with some sectors over the next few months that will be particularly badly hit such as food and beverage,” he added.