Mumbai: Mid-market lender, Vivritti Capital has raised $55 million (about Rs 400 crore) in a fresh funding round from some of its existing investors, LightRock India and Creation Investments.
With this latest round of funding, Vivritti Capital has raised a cumulative $165 million since inception.
Both Lightrock India and Creation have already participated in Series A and Series B rounds of the Chennai-headquartered firm.
The funds will be used for business expansion as well as technology for acquisition, product delivery and portfolio management. A portion of the fund will go to its subsidiary Vivruti Asset Management, which will use it to enhance the asset management platform focused on credit performance.
Vineet Sukumar, Founder and CEO, Vivruti Capital and Vivruti Asset Management, said, “This fund will give us enough firepower in the domestic and international markets.” “We see a huge opportunity in the medium-sized market and there is a huge gap between the medium-sized firms in terms of financial needs and availability of resources.”
Avendus Capital was the advisor to the deal.
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Founded in 2017 by Gaurav Kumar and Vineet Sukumar, Vivruti is a non-deposit taking NBFC and it lends from its balance sheet. NBFCs as well as AMCs have already established leadership positions with $700 million in AUM and commitments and line of credit from top ten banks in India as well as major international debt investors.
Mid-market enterprises have outstanding debt of more than INR 10 lakh crore. Currently, private sector lenders account for less than 30% of outstanding mid-market credit.
There are over 40,000 mid-market enterprises in India that account for less than 15% of the debt market. These corporates with revenues above Rs 100 crore operate at less than 20% of the leverage levels as compared to their AAA and AA counterparts.
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