Asia's leading venture debt and specialty lending business InnoVen Capital has announced the deals done in the last quarter of 2016 and aggregate funds disbursed in the year.
During Q4 2016, InnoVen extended debt funding of more than Rs.110 crore in 13 new deals, whilst its deployment for the year totaled to almost Rs.400 crore across 43 loans to 35 start-ups of which 26 were new additions to the portfolio.
Since its inception, InnoVen has provided over Rs.1260 crore in venture debt across 140 deals from diverse sectors.
Those funded in the last three months include Swiggy (food ordering and
delivery service), Coverfox (online insurance provider), Furlenco (furniture rental-company), Flyrobe (apparel rental company), Zelo (branded PGs), Unbxd (site search and product recommendation solutions), Surewaves (advertising platform) and include repeat deals done with XpressBees (e-commerce logistics) and Universal Sportsbiz (celebrity fashion brands).
InnoVen continues to actively co-invest in diverse sectors such as e-commerce, food-tech, logistics, education, enterprise-tech and healthcare.
Out of the total funding, 55 percent comprised of venture debt to early stage companies whereas 45 percent was growth capital to businesses that are relatively larger. Furthermore, InnoVen also provided cross border funding to Capillary Technologies and Simplilearn to finance the global operations of these companies. Recently, the firm also launched InnoVen Credit Assistance Program (InnoVen CAP) in order to help select portfolio companies meet their working capital or capital expenditure needs in partnership with banks to structure debt solutions that can optimize overall cash flow efficiency for these businesses.
"Venture debt is steadily getting established as an important component of funding rounds. Our ability to fund cheque sizes ranging from Rs. 2 crore-50 crore allows us to straddle different lifecycle stages of companies. We are also actively exploring debt funding for growth-stage non-VC backed companies as well, which have the ability to show differentiation that translates to enterprise value. In these cases, our underwriting approach is a little bit different but we try and restrict this to new economy sectors where there is familiarity. India continues to be an attractive startup ecosystem but the recent phase of recalibration is a good wake up call to ensure value meets capital appropriately where venture debt, similar to equity, continues to be available in strong supply but the bar for good businesses has gone up sharply.
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