Dig­i­tal Lend­ing Co At­tains Zen with .₹ 17 cr from IFMR

The fund was raised by al­lot­ting non-con­vert­ible deben­tures

The Economic Times - - Disruption: Startups & Tech - Mugdha.Vari­yar @times­group.com

Ben­galuru: Dig­i­tal lend­ing com­pany for small busi­ness Zen Lefin, known by its trade name Cap­i­tal Float, has raised ₹ 17 crore from IFMR Cap­i­tal Fi­nance and its al­ter­na­tive investment fund by al­lot­ting non­con­vert­ible deben­tures (NCDs), bring­ing the com­pany’s to­tal cap­i­tal raised through the route this fi­nan­cial year to ₹ 60 crore.

NCDs are loan-linked bonds that can­not be con­verted into stocks but of­fer a higher rate of in­ter­est than con­vert­ible deben­tures. Cap­i­tal Float al­lot­ted NCDs to IFMR Cap­i­tal Fi­nance and IFMR Fim­pact Long Term Mul­ti­as­set Fund in De­cem­ber, as per doc­u­ments filed with the reg­is­trar of com­pa­nies. The dig­i­tal lender said the cap­i­tal will be used to lend to ex­ist­ing and new small and medium en­ter­prises (SMEs).

“The NCD raise is for strength­en­ing our lend­ing books. This will en­able us to ful­fil the work­ing cap­i­tal re­quire­ments of SMEs; for both re­peat bor­row­ers from our ex­ist­ing cus­tomer base and for new cus­tomer ac­qui­si­tion,” said Sashank Rishyas­ringa, co­founder of Cap­i­tal Float. The com­pany sees NCDs as a good al­ter­nate for fund rais­ing, in ad­di­tion to rais­ing cap­i­tal via term loans from banks and other fi­nan­cial in­sti­tu­tions, Rishyas­ringa said.

“This NCD raise is in line with our over­all strat­egy to deepen our li­a­bil­ity side and will help us in achiev­ing much bet­ter as­sets and li­a­bil­ity man­age­ment (ALM). We are al­ways on the look­out for an op­por­tune time to raise NCD at com­pet­i­tive borrowing rates,” he added.

IFMR Cap­i­tal of­fers ac­cess to debt cap­i­tal mar­kets to in­sti­tu­tions that work on fi­nan­cial in- clu­sion. Last year, its sub­sidiary IFMR In­vest­ments had launched the IFMR Fim­pact Long Term Multi Asset Class Fund, a debt fund of ₹ 250 crore reg­is­tered with the Se­cu­ri­ties and Ex­change Board of In­dia (Sebi) as a Cat­e­gory II Al­ter­na­tive Investment Fund (AIF). ET reached out to IFMR Cap­i­tal but did not get a re­sponse till the time of go­ing to the press.

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