Exclusive: IntelleGrow plans to raise new $20m debt fund targeting Indian SMEs

Intellecap grouppromoted venture debt firm IntelleGrow, which is qualified as a non-banking financial corporation, is now readying to launch a new debt fund of around $20 million.

At present, IntelleGrow provides cash flow-based debt to early-stage, high-risk and under-banked companies in India, especially in the social impact sector.

“We are looking to launch an AIF this year to meet certain needs of our customers,” Intellegrow CEO Akbar Khan told DEALSTREETASIA.

As compared to an NBFC, an Alternate Investment fund (AIF) is a SEBI-regulated investment vehicle, which is established to pool in funds for investment, which could be in the form of venture capital, private equity, hedge funds, real estate investment trusts, among others.

“The plan for the AIF is that Intellegrow will be the fund manager. We are going to go out and raise capital from a different class of investors not our equity investors, but investors who are looking for looking for exposures to SMEs,” said Khan.

“For us its a relatively easy extension to what we are doing right now,” he said adding that the new debt fund will help the firm to provide longer term loans, which were also seeing a good demand

“When we lend from our balance sheet we lend for about 24-36 months. Our sourcing and servicing from our debt pools can go up to 48 months. From our AIF we would like to do longer dated loans for our customers,” said Khan.

The fund will also help the firm to provide an additional credit product offering to its high rating clients, making it complementary to its current loan offerings.

Though the plans are still at the preliminary stage and the final corpus is yet to be finalised, Intellegrow is already in talks with investors for the fund, which is likely to be closed by December.

In June last year, the company had raised $20 million in equity and long-term debt from Triodos, Developing World Markets, Omidyar Network and Calvert Foundation and Overseas Pvt. Investment Corp. Prior to that, in February 2016, it had raised $8 million from Calvert Foundation, a US-based community development financial institution.

Other venture debt players in the market include Temasek-backed InnoVen Capital India and Trifecta Capital Advisors LLP.

Also Read:

India: Venture debt firm IntelleGrow raises $20m in equity and debt

India: UTI Asset Management to launch a private debt fund

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.