Ven­ture Debt Fund In­noVen Cap Hunts for Healthy Deals

Con­sumer prod­ucts & health­care ser­vices firms top the list

The Economic Times - - Disruption: Startups & Tech - Biswarup.Gooptu @times­

New Delhi: Con­sumer prod­ucts and health­care ser­vices com­pa­nies are at the top of the list for Te­masek-backed ven­ture debt firm In­noVen Cap­i­tal, as it looks to broaden its port­fo­lio and be counted as the first port-of-call for non-ven­ture­backed firms look­ing for debt fi­nanc­ing.

The firm, which closed deals worth .₹ 110 crore at the end of the third quar­ter of the cur­rent fis­cal, is now con­sid­er­ing com­pa­nies that are yet to raise fund­ing from tra­di­tional risk cap­i­tal, such as pri­vate eq­uity or ven­ture ca-


pital, have been boot­strapped or have raised more tra­di­tional forms of cap­i­tal.

“Over the past few years, we went with VC-backed com­pa­nies be­cause as a lender, we wanted some hy­giene to be there in the com­pa­nies, such as gov­er­nance and con­trol... The log­i­cal ex­ten­sion is if the same trends are vis­i­ble in other (non-VCbacked) com­pa­nies, what stops us from eval­u­at­ing them for debt?” said Vinod Mu­rali, man­ag­ing direc­tor at In­noVen Cap­i­tal.

Ac­cord­ing to Mu­rali, In­noVen will pro­vide debt to th­ese com­pa­nies to not just meet their work­ing cap­i­tal needs, but also fi­nance po­ten­tial ac­qui­si­tions or as­set cre­ation for ser­vices com­pa­nies, sit­u­a­tions that need a steady flow of mez­za­nine cap­i­tal in In­dia. “If it’s an off­shore trans­ac­tion, there is no lim­i­ta­tion. We can do $10-20 mil­lion in fi­nanc­ing, given that we also have a ve­hi­cle in Sin­ga­pore,” he said.

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